Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
If PHE gets 0.5m per year for each system built, and the valuation of a company is very roughly 10x its annual profit, and if (again very roughly) other income covers costs of PHE (research, office space, etc.) then (extremely roughy I know) a valuation of £200m equates to an annual income of £20m, i.e. 40 units sold. This is all very spongy, but it seems we can look for a dozen in UK (Peel), maybe ten in the EU (say five in Poland and one each in a few other places), and another twenty from great excitement and possibility elsewhere.
So this is all very spongy, until the new 25 ton unit is proved and orders follow.
As to reaching a £1 sp, (ie market cap of about £4b) I think that would imply 8,000 units, which may happen or even be surpassed in say five years, but is surely highly speculative at this early stage.
I look to Dr A to sharpen up the above thinking for me, but I guess my underlying question is, have we believers been a tad too enthusiastic, and the current drop in price reflects holders saying to themselves, "wait a minute. This isn't happening yet." ?
OK, thanks. Please ignore my next post - I thought my first had not registered.
Reference to large gas company intriguing !
Dr A: do you have a link to that?
Do you have a link please?
Excellent news. Though a simple concept, the DMG is apparently complex enough that it is worth flexing the design to suit Peel's requirements. This explains the extra design time spent, and the detail on the long lead time items is encouraging to anyone who may have thought the whole thing was fizzling out. It isn't. It's going full speed ahead, though - as usual - things take much longer than everyone would like. Now that they have decided precisely what they are doing, finalising the finance should be straightforward.
Maybe Poland will win by several lengths !
a) It has been shown to work in prototype - tested many times. (Peel is investing, though their timescale may irritate some.)
b) It may be that firms in other countries (Poland being one) will take this on faster than the UK.
c) Although the UK's position on climate change & the Glasgow conference may shine the spotlight on PHE bringing more buyers and/or more government money or government underwriting of private money.
The case for doing something about the massive problems this technology addresses is unanswerable and urgent.
Please stay and continue posting when there is something to say!
I am emphatically not a shorter. I have a large fraction of my portfolio in PHE and I wish it well - as soon as possible please, though experience shows almost everything takes longer than planned, sometimes a lot longer.
Dr A, how would PHE go forward if Peel are strapped for cash and have to delay or pull out? My assumption is that they would shift to using the Polish implementation and so their long term prospects would not be so greatly affected. If Peel were in a really bad way they might hold on to this as a flagship top priority for them, but getting to that point might take some time (eg finding a buyer for an unrelated asset so they could get to financial close). (I have no back channel knowledge, but Peel may be affected by the the pandemic just as any other company may be.)
Thoughts?
Given the pandemic and hence a lot less rent coming in for offices and airports and suchlike, maybe there are some problems to be overcome in order to identify sources of cash to reach financial close?
Hi Dr A, I’m really positive about this, so this is intended as positive not negative criticism:
I think the video is professional standard, but like several I’ve seen of its type it builds and builds and builds, without being repetive, and finally overwhelms the viewer and they could lose the plot (I lost concentration)
So I suggest an adjustment, like this, weaving in the facts you already have with opposing arguments (maybe two people, Mr Man-in-white Coat and Mr Simple if you will) :
W: We can change plastic
(still of cube of white perspex labelled PLASTIC)
into
HYDROGEN (still of chemistry class bottle labelled H2.
S: So what?
W: So what? That means we can change this (video of disgusting river full of plastic)
into THIS (still of canisters of H2)
AND that changes THIS (video of vehicle belching black smoke from its exhaust
into THIS (video of clean water dripping from an exaust
…
and responding positively to the complaints from Mr Simple:
S:- it hasn’t been tested
W: oh yes it has - we’ve tested it every which way, run it hot and cold, turned it off and on, improved it, tweaked it, rammed it, slammed it, for xxxx REPETITIONsS - more than it will face in real life
(video of hammer hitting something that doesn’t break)
we can change PLASTIC (short video or still) into HYDROGEN (short video or still) i
and
we can change NASTY FUMES (short video or still) i into CLEAN WATER (short video or still) i
S:- no one could have come up with that in a few minutes
W: we didn’t we’ve worked on it for years
we started work in it in 19 xx
we can change PLASTIC (short video or still) iinto HYDROGEN (short video or still) i
and
we can change NASTY FUMES (short video or still) iinto CLEAN WATER (short video or still) i
S:- it’s too expensive
W: no it isn’t. They’ll pay us to take away their plastic
we can change PLASTIC into HYDROGEN
and
we can change NASTY FUMES into CLEAN WATER
S:- H2 is expensive to transport around
W: we make the H2 wherre it’s needed
we can change PLASTIC into HYDROGEN
and
we can change NASTY FUMES into CLEAN WATER
POWERHOUSE ENERGY:
We’ve got ONE really important solution
(artists impression of PROTOS when built)
to TWO really big problems (plastic in rivers, vehicles belching smoke)
POWERHOUSE ENERGY: Contact details
It's been working in prototype and heavily tested for more than a year (at Chester?) , as I understand it, and improvements have been added since then. But DYOR !
That was Keith Allan wasn't it?
The recent PHE presentation & Q&A:
https://www.youtube.com/watch?v=Yc8zzt1LHyI
Anyone who thinks Johnson exhibited significant character flaws before and during his early period as prime minister is a left wing nutter? I suggest you subscribe to the Times and see what the readers there think of him. Anyone who thinks Brexit was a mistake is also a "left wing nutter"?
Perhaps better to stick to what we're here for: PHE and its excellent prospects, perhaps buoyed up by policies of a government that has - at last, after a tragically long delay over decades, ever since Rachel Carson's 1962 book Silent Spring for example - come to the view that belting out carbon dioxide into the air in huge volumes for about two hundred years (and doing lots of other stuff with messy and poisonous results) that we, along with others, ought to do something about it !
surely 100 by 2027 0r even 2025?
Oncey ou have one commercialised and worming, what's to stop it? Why assume such a long time frame?
If PHE is as good as it looks on the tin, powerful players will be reverse engineering, copying, thinking, spying, or even just using the added "someone has already done this, therefore there must be a solution, therefore I will find it" - which used to help me a long time ago when I was doing maths problems. My point is, to maximise their advantage, PHE and Peel must get or keep their skates on, with top business talent. Yeo was right - speed is of the essence in this situation (and I would add, so perhaps is a good legal department).
Agreed Dr A re your 11.08 post.. If you have something wonderful to sell, better get out there and sell it at volume so people come to you for it, before others pick up your idea and become the lead player while you are going into liquidation trying to afford suing them.
Two possible downsides. One, Chinese copy. Two, PHE goes lickety split for roll-out and runs out of money, can't pay bills (or salaries of expanded workforce) until sales money comes in. Plenty of very small businesses have died from that one. The first more worrying than the second (the second covered in Peel cases, because Peel taking the risk - presumably that approach will continue). China more or less killed the solar panel industry by undercutting. Not sure what the defence is, though presumably patent protection means they could not do this in the West?