The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I for one am looking forward to Bluetoffs reply.
Quite a few I would imagine.
Protos will eventually process 300,000 tonnes of plastic a year, the average rejection rate is 20% so there is a possibility of 4 or 5 DMG's there.
Hydrogen Utopia announces it's first project in Poland and that first site will contain 10, yes 10, DMG units.
https://www.hydrogenutopia.eu/news/11-02-2021
A common mistake, especially in the media, it is not hydrogen OR electricity it is hydrogen AND electricity, the remaining tail gas after the hydrogen separation is still used to generate electricity.
PHE have stated that Peel are proceeding with the planning application work for the next two sites.
For those of you that don't know, W2T, before being taken over by PHE, had approached the majority of UK incinerator operators with a scheme to sort the plastic from their feed-stock and put it through a DMG.
This scheme would not only give them additional revenues from the DMG but it would also enable them to increase their revenues with the incinerator because taking out the high calorific plastic enabled more low calorific waste through the incinerator.
But every one of them wanted to be the second customer....once Protos is up and running there will be a flood of orders from these operators....and not just in this country.
Well Markrops, you might think you are being realistic but have you done enough research to understand the revenue streams available to the owner of a DMG unit?
The investors here have and that is why they know that once the FOAK is up and running there will be an influx of not only orders in the UK but also companies like Peel in many other countries around the world wanting to take up a license.
Each licensee will, I have no doubt, be wanting to progress projects as quickly as possible.
There will be no bottle-neck with the engineering side of the DMG either as PHE have a number of international engineering companies wishing to take on that task.
Why on earth would we not have the first DMG in Japan until 2025 when PHE have at least three, yes three, international Japanese companies, including Toyota Tsusho, interested.
And only 100 worldwide by 2030? I would say you are likely to be an order of magnitude out on that one.
AIMHO
Many thanks for sharing Dr.A
Well, it might feel like a kick in the teeth to some but we need to look at the bigger picture.
The recent share price rise has given PHE the opportunity to raise £10m at very little dilution to existing investors with the added benefit of greater future returns from the FOAK.
It's a fair assumption that investing £10m in the FOAK gives us a 50% share of future profits from the FOAK, after the £0.5m royalty payment.
Let's say revenues would be £70/t for waste, £60/Mwh for electricity and £7.50/kg for H2 based on a 35t/d DMG outputting 58Mwh and 2t of H2 per day, operational for 333 days per year (and all H2 is sold).
That equates to £6,969,690 per year, from past broker notes etc £1.5m should cover OPEX, leaving £5,469,690, less the £0.5m royalty payable to PHE leaves £4,969,690 to be split 50/50 between PHE and Peel.
PHE's revenue from the FOAK would be £2,484,845 + £500,000 = £2,984,845 which would, incidently, put us into profit on that first unit.
I agree with Piltick, we should now be in a position to invest in DMG projects for far greater income.
AIMO DYOR
mysteryguy, just out of interest what share prices are you basing your percentage rises on for PHE and EQT?
The White family took part in the £5m raise, 09-09-2020.
The White Family is a long-term supporter of the Company and is investing
approximately GBP1.3 million in the Placing. The participation by the White
Family is considered a related party transaction under the AIM rules as the
White Family (constituting Howard White, Ben White, Josh White and Serena Eden
Reyes-White) currently holds 26% percent of the share capital. Following the
Fundraising the White Family will hold Ordinary Shares representing 26% held
by the individual White Family members as follows:
Hi Kenny, it's legislation like that that could trigger some of the UK's waste management companies, who are aware of us but wanted to be the second customer, to get off their behinds and get their orders in sooner than later.
Kenny, I'm so glad I didn't have my drink in my hand when I read that lol
Guess who posted this on the BP board.....
BP transition29 Dec 2020 18:35
The space I watch in BP transition/repositioning is what tech/projects they buy into. I would imagine the will look for robust intellectual property....are PHE/Eqt such candidates?
You make a very good point BlueToff, the next few days will telling.
Further to what Kenny posted, I would add that from what I have gathered DR is trying to time the actual patent applications to give as little time as possible to any competitors to extract information before the FOAK is up and running.
Also I believe W2T had an office in Japan, so presumably PHE have it now.
Hi Wolves and a happy new year to you too, I hope you are keeping well.
I'm not aware that PHE have given any indication as to how they would use that money if and when it comes.
I don't think it will be used for general operations as DR stated the last raise should see us to break-even and we will also be due a further £0.5m if and when Peel take up the UK licence.
So that only leave R & D or investment opportunities, I think if I were to hazard a guess I would say R & D.
Thanks for your professional insight Rich.
Thanks for that Kenny, so the vast majority of plastic could eventually end up as non-recyclable and the numbers that Valuation-it-is calculated are a possibility but not necessarily likely as other options are available such as plastic to oil.
Hi RichKen, on the subject of recycling, is there a limit on the number of times plastic can be recycled, does it degrade with each cycle?
If there is a limit how would the recycler know when it was time to pass the plastic on for conversion?