Member Info for Piltick

I wonder whose "pyrolysis" technology is being proposed for Kibo's waste to energy project in South Africa. If they are using terminology such as "pyrolysis" then I assume it is neither PHE's nor Eqtec's.

https://www.lse.co.uk/rns/KIBO/agreement-to-co-develop-renewable-energy-projects-gjws5j7817vxnn1.html

Well said TheT. Personally I think it's disgusting that the UK ships its filthy waste to other counties, as it ought to be dealt with where it originates i.e. in the UK. But that should have been the case all along, not just recently.

Fantastic news:
"JCB has developed the construction industry’s first ever hydrogen powered excavator."

Now, can we get it over to Plot 10B?

Hi LedZep, I’m sure that the share of profits from the SPV company will be split in accordance with the % of the shareholding. Surely after all this time they can’t still be haggling over the % shareholding of the SPV!

My understanding of the structure, shareholding, loans & financing etc. is as follows:

Peel have established a company named "Peel NRE Hydrogen Ltd." which will act as the parent company for all of the SPVs that will become the operating companies for the DMG installations throughout the UK.
Under this company, Peel have also established a company named "Protos Plastics To Hydrogen No1 Ltd." which is the SPV for the FOAK DMG installation at Protos. Presumably subsequent SPVs for other sites will be numbered No.2, No.3, etc.

It is my understanding that the shareholding of the SPV "Protos Plastics to Hydrogen No. 1 Ltd." is to be shared between "Peel NRE Hydrogen Ltd." and PHE, and perhaps one other investor yet to be identified. It is this SPV company that PHE has made the loan of £3.8M to, and I would expect (although not confirmed) that this loan will become part of PHE's shareholding at a later date.

PHE will therefore have a share of the profits from the SPV company, as well as its £500k annual fee from the SPV. All of the project income and costs will be channeled through the SPV as a separate entity. Although it hasn't been specifically stated, I would expect that the lease for Plot 10B will be held by the SPV company and that the rent for the site will be paid by the SPV to Peel.

For reference regarding PHE's investment in the SPV, see the RNS dated 14th January, under the heading "Use of Funds":
" Powerhouse will apply the net funds from the Fundraising to invest alongside Peel NRE Environmental Limited" which would suggest PHE intends to invest a total of £10M into the SPV and not just the £3.8M loan. Also:

"This investment in the Protos SPV will give the Company access to extra revenue via participation at project level on the first commercial deployment, rather than simply as licensor of the DMG technology" which clarifies the point that PHE will be entitled to a share of the profits as well as the annual licence fee.

Thanks for the link z-cars!

Tim is becoming quite a celebrity!
I do agree with your comments about him, abdalian. I must admit I was rather dubious about him at first, but now I've decided that I'm not really fussed about his past political career issues, I'm only concerned about what he can do for PHE. And he certainly seems to be communicating well with shareholders, and indeed the market generally, and I just wish that CEOs / Chairs of some of my other AIM holdings would do likewise!

A "Terminator" button would be much more effective than a "Filter" button.

Well it's good to see that at least some of the car manufactures are not wearing blinkers!

I didn't say that Peel has run out of money, and I don't want to start a hare like that running.

Stumbler: I must admit that it looks as if Peel don't want to use their own cash, or perhaps they are short of cash, but bear in mind that the ownership of the SPV is to be shared between PHE and Peel. I don't know at what ratio but I expect it will be near to 50/50. So the £10M that PHE raised in January was intended for this project, either all or in part being PHE's share in the SPV.

I really don't believe that anyone has been sitting on their hands, neither PHE nor Peel. It's my belief that a lot has been going on in the background that we are not aware of, because we're not being given detailed progress updates, so we naturally assume the nothing is happening.

This is precisely why PHE raised £10M in January (RNS 13 January). It was raised to enable long lead items to be ordered. It seems there has been a delay in placing the orders, but thankfully things are moving ahead now.

By the way, this has got nothing to do with Peel's confidence in the technology. It's not PHE who are committing to the purchase of the long lead items, it's the SPV. I expect this loan will end up as part of PHE's share of the SPV, that's just my opinion.

testpack: "It would have been helpful if he had stated that this roll out [Poland] is dependent upon the success of Protos DMG?"

It's not. TY stated in an interview that there is a possibility that the first Poland DMG might be up and running before the one at Protos.

Thanks LedZep and telephoneman. Yes it was the non-recyclable plastic that would be rejected by Enviroo that I was thinking of for feedstock for the DGM, but hopefully they will have contingency plans in place as well.

Clearly the Marsh Lane access is critical.

I believe that PHE will be getting its feedstock from Enviroo next door on Plot 13, so it would perhaps give us some comfort if we could see some activity starting on their Plot 13.

I wonder what method they intend use to produce the hydrogen?

Now I'd hate for anyone to think that I'm knocking ITM, I have no reason to do that, but when are they likely to start making a profit? To justify a MCAP of £2.4B at some point in the future, with a P/E ratio of say 20, they would need to make an After Tax profit in the region of £120M. That's profit, not Revenue. Is there a chance that they might reach that point in say 5 years? Or 10 years?

I reckon they will have picked up quite a few stop-losses this morning.

All good points, both posters.