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LedZep: "Could it be that as PHE have agreed an annual license fee for the first and subsequent 4 projects, that Peel are prepared (with a mix of government grants) to fund, not only the FOAK but also the subsequent four projects?"
That's the impression that I got from the announcements, that Peel would be the developer and hence take on responsibility for funding the next 4 DMG units.
I'm also thinking that it is likely that each DMG site will be within a separate SPV company, which means that each SPV could have one, two or more shareholders. At this time I would expect Peel to be the only shareholder of the SPV for the FOAK DMG unit, but it could be that additional shareholders might take an interest in subsequent SPVs. Furthermore, it would make sense for the enlarged PHE-W2T (merged) company to become involved as part shareholder in some of the SPVs in the future, IMHO.
Wouldn't surprise me at all.
Telephoneman:
From PHE RNS 11th Feb:
"The Supplemental Agreement contains arrangements for the monetisation of the DMG® Technology at Protos, which will include a £500,000 annual license fee payable to PowerHouse per project upon each project being commissioned. "
Emphasis on the "annual"
Could it be that as PHE have agreed an annual license fee for the first and subsequent 4 projects, that Peel are prepared (with a mix of government grants) to fund, not only the FOAK but also the subsequent four projects?
Just a thought!
Badshah, I know it is an annual fee but the PHE RNS did not confirm that which is why I referenced the W2T announcement which does.
From the PHE RNS,
"The Supplemental Agreement allows Peel to act as the developer of Protos and
four further DMG® sites in the UK pending finalising the proposed acquisition
of W2T by PowerHouse, with W2T relinquishing its entitlement to UK exclusivity
for the technology and development rights of PowerHouse's DMG® technology."
Protos plus 4 others = 5 = £2.5m!
Much appreciated.
Sorry I meant correction. It is annual fees not just one of commissioning fees
Telephoneman, correct £500,000 is the annual licensing fees per unit which means it's kind of royalty for using unit. As per you calculation if 1 unit is installed in 2020 and 5 more in 2021, income for 2021 should be £3.0m.
Anyone knows approx how much does a unit cost?
Hi jabberba, from the 11th Feb RNS it says PHE will receive a £500.000 licence fee for each of the projects upon commissioning.
The W2T announcement from the 8th Feb confirms that this is an annual payment per DMG.
So it looks like Peel has negotiated a flat annual licence fee regardless of the output for these first units (possibly in return for funding the FOAK).
At the moment we don't know whether PHE will revert to the Royalty model for subsequent installations or stay with a simpler licence fee.
I like the fact that the licence fee is payable once commissioned, this means we have earnings much sooner.
So by the end of this year, or very early next, we should have earnings from 1 DMG of £0.5m, by the end of 2021 we should have earnings of £2.5m from 5 units from Peel alone.
I would expect that once the FOAK is up and running there will be further licences granted for other interested parties so this could snowball very quickly.
Hi telephoneman! You were always on top of the numbers. What will each dmg be earning at each protos site after the merger? Cheers. Good to have your input again.
haha, yes they can but they have such low quality CV that they're a complete waste of time as you only get hot air out of them.
Including trolls?
Yes, DMG can gasify virtually anything organic.
Anyone watching? Can DmG gasify clothes?