A step closer to a commercial DMG21 Feb 2019 05:54
Friday, 15 February 2019
PowerHouse Energy - A step closer to a commercial DMG?
PowerHouse Energy Group PLC (PHE), served up an rather confident opperational update this morning. There appears to be a promise of at least one commercial DMG in the next quarter...its been an emotional wait!
For those less familiar with PowerHouse, the company has developed independently varied DMG unit, which essentially gasifies waste plastics, rubbers, etc and turns it into near zero carbon resuable clean energy. As I have previously indicated, I expect the first commercial unit to be sited at one or more waste disposal sorting sites. However, this number looks quite capable of increasing to around six, for which I believe funding is already in place.
For more detailed background on PowerHouse visit the link here.
The level of interest in the PowerHouse proprietary DMG process from potential customers, development partners and engineering, procurement and construction (EPC) contractors has increased significantly in the last quarter. Most of the interest expressed has comprised specific enquiries that have been or are being taken through a screening process prior to formal proposals. As a consequence, we are progressing a number of potential deals in parallel, which we are confident will result in a final contract for the first commercial DMG. We also have strong expressions of interest from over a dozen site owners who would like to establish DMG units on their sites once our first unit is proven operationally.
We are currently collaborating on detailed site operational requirements, delivery programmes and framework contracts for 6 client sites in the UK where it is anticipated that the DMG process will be utilised first. As part of this process, potential customers or partners are undertaking their own due diligence on the DMG process, potential operational savings and the speed with which plants can be delivered. When this process is complete, heads of terms would need to be agreed before signing a formal contract. We would anticipate reaching a head of terms with at least one customer in the next quarter. Signing of contracts would initiate revenue generation for PowerHouse.
Our planned delivery programme for the UK is that DMG systems will be bought by partners and customers and located on host waste sites, with revenues for PowerHouse arising from sales and licences. We are in the process of progressing planning and permitting assessments on the potential clients sites under negotiation, in readiness for formal submission on initial contractual agreement.
It is anticipated that engineering and site assembly of each DMG unit will involve an EPC partner. We have been approached by several blue-chip companies who would like to be considered to fulfil this role, each with worldwide delivery capability. To support this contractual engagement, PowerHouse has already put in place all the operational systems, procurement, contractual and li
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