Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Dr A, yes it could be good news but that depends whether the redesign ultimately results in significant economic benefits compared to the time taken to redesign and go through all the checks and balance processes again.
In the past so many UK military contracts started off with a specification that then continually changed. The result was long delays and cost over-runs.
Sometimes its best to get a product into the commercial market excepting that improvements or upgrades can be made at a strategic convenient time. All of this can be built into a contract.
Wolves
Wolves
Dr A, thank-you for your 9.25am post today. Always useful and I'm grateful for your continued input.
A couple of questions.
Has Howard ever given you a reason for why the last two years have been allowed to drift? If my family owned 25% of PHE, I would have been all over this.
A lot of questions have previously been raised as to whether Peel was slowing the progress of 1st plant but could it actually be PHE and the DMG not being ready for commercial operation?
I never received any replies to my emails from our previous CEO.
Wolves
Piltick, 100% agree with you re PHE update. Even if it is only to say that a thorough review of the business and business plan was being undertaken and that when complete they would announce a strategy of how they are going to proceed. This should include if Peel doesn't sign as per timescales.
There should be an update on the procurement of long stage items as this was announced as part of the fundraise.
I believe it is also necessary to remove any confusion over HUI, PHE and Electron's association and to confirm that PHE will still be entitled to any royalties from HUI even if the plant is adapted to meet HUI's own requirements. Also why changes may be necessary and does it effect the Peel model.
Wolves
AudibleEnergy, good to hear from you.
I sold part of my holding and diversified. I have managed to buy back much of what I sold and kept the diversification intact.
I'm still a strong believer in the DMG, but I share many of your concerns. We both do our research but I suspect in slightly different ways. I've not been a fan of the procrastination that appears to have occurred. Certainly not a fan of rolling over contracts and loan facilities without a renegotiation of terms and conditions.
I still believe this will come good though. The funding rounds gave PHE a little leeway. While it grates me to say it, Peel was put in the driving seat and given the keys. I suspect that Peel is doing what's best for Peel and their timelines are based on the provision of feedstocks but also the use of outputs. They are whole site planning not just PHE. Why have a plant standing unutilised when the cash could still be in the bank? Who's bank though? Accountants treasure good cash management.
Carry on asking the questions. Anything thought provoking is always a bonus in my book.
Wolves
AudibleEnergy, good to see you back and in full swing again. Always enjoyable to read the bear baiting and the slightly different perspective. I hope you're planning on making an appearance at the AGM this year to help cheer up the proceedings. Another pints in order.
Wolves
Dr A
I understood that the loan and financial close were two different contractual issues. Based on this, the RNS does not specifically mention the financial close.
As I have stated before, if Peel is unable to complete, PHE should have renegotiated the terms so that the current shareholders are not as diluted as we will be. The board should have been looking at all options including raising the money to go it alone. What happens next time when we get the next delay and excuse?
I want to see a bit of grit and determination from our new board. Confidence that PHE can deliver is seeping away. The model certainly needs to be reviewed and more control taken by PHE. The saddest part of todays RNS is that we had already seen it coming but hoped instead that the rabbit would be pulled out the hat.
The AGM although a while away may have a few unhappy investors if this inertia continues, and I'll be one of them.
Wolves
NutHazard
This is how it is used by Thames Water:
https://www.thameswater.co.uk/about-us/responsibility/managing-sewage-sludge
It is just another marketable product. The use would be governed either/or by government and/ or local regulations and then by project profitability compared against its other possible usage.
Wolves
NutHazard
This maybe will give you an idea on fatbergs.
https://www.mylondon.news/news/local-news/how-giant-fatberg-fuelled-350-21302928
Wolves
Dr A
Without being able to read the current agreement with Peel and all its fine words, it is impossible for us PI's to fully know the implications and potential options to PHE. What we do know is that the FOAK is considerably behind the schedule originally put out by PHE.
If financial close isn't completed by the extended Feb 2022 timescale then this would be the perfect time to renegotiate or cancel the agreement in its present form. With HUI in the picture Peels position is a lot weaker than it was. PHE also has a wad of cash and/or lead time materials probably recoverable from the SPV.
If the BOD have been undertaking risk assessments relating to the contract , then I would have expected them to have lined up an alternative option in the event that financial close doesn't happen again.
Whilst I generally share your view post Wed 11:50, sometimes it is necessary to take stock of a situation and move in a different direction. If financial close isn't completed this time, it may be time for a change. I really don't accept that kicking the can down the road again would be the right option. Peel need to show they are serious.
Wolves
And then we have GE.
https://www.geaviation.com/company/sustainability
I wonder which of these three big companies is in the lead on hydrogen flight?
And why not have a read of the pdf accessible on:
https://www.heathrow.com/company/about-heathrow/future-flight-challenge/napkin
Wolves
And even more background:
https://www.ainonline.com/aviation-news/aerospace/2021-05-03/aircraft-engine-makers-mostly-agnostic-hydrogen
Wolves
A little bit of history:
https://history.nasa.gov/SP-4404/ch8-9.htm
Wolves
Worth a read if you haven't already:
https://www.rolls-royce.com/~/media/Files/R/Rolls-Royce/documents/others/rr-net-zero-exec-summary.pdf
Page 4 "we will make all the commercial aero engines we produce, and our most popular reciprocating engines, fully compatible with sustainable fuels by 2023".
Wolves
Thanks Julfr.
By my calculation, as planning was obtained March 2020, two years have been lost with only twelve months still to go. Lets hope that the Peel Protos application is successful or we manage to get a spade on site, dig a hole and pour some concrete before Peels original permission lapses.
Time is ticking!
Wolves
Thank-you to the BB members who have already responded.
Any additional responses to the questions raised (my post Saturday 17:35) would be appreciated.
Wolves
Please can anyone inform me if the original planning permission for plot 10b is time limited?
Do the preliminary works already carried out on the plot itself full fill the planning start timeline so that the planning permission now exists in perpetuity?
If the works undertaken to date doesn't constitute a recognised start date (re: planning), then when will that planning permission laps?
Normally with a single house the start is recognised with the foundation pour. Is it the same with general construction ie the site slab?
I would appreciate replies from anyone with specific knowledge in these fields of planning and industrial construction projects.
Wolves
Paul Drennan-Durose - Chief Executive Officer appointment was not on my radar as I had been hoping for a more established and well known CEO with masses of contacts via one of the worlds top companies. At first I was a little disappointed with the announcement but on reflection I think he will be a very good fit for PHE as the appointment of Gill Weeks NED was.
My reasoning behind this is that his background at Heliex:
'The Heliex GenSet harnesses saturated process steam and generates low cost electricity that can be used onsite or sold back to the grid.'
'With no disruption to your plant production, our system is easy to install, provides tailored outputs from 70 to 630 kWe based on your specific requirements' and pays for itself in less than three years.
The DMG will produce excess heat that could be used in many applications. However the Heliex Genset may be ideal for adding an extra income stream into the DMG output process. Converting a water source into steam obtaining electricity by effectively reducing the flow rate/pressure but ending up with a output similar to the input to be used in more conventual income stream possibilities. This is real added value with claimed capital payback in under three years.
https://www.heliexpower.com/technology-products-services/the-technology/your-steam-system/
https://www.heliexpower.com/industries/district-heating/
PHE benefits by the ability to increase its licence charge due to any additional project profitability. Also Paul will already have a working relationship with Heliex partners but also its biggest investors BP Technology Ventures Limited and ESB NOVUSMODUS LP. That connection with BP interests me. Heliex is winning contracts, that indicates to me that PHE can benefit from a winner at the helm.
The other recent appointment of Gill Weeks as a NED was far above my expectations. She will have brought with her a level of expertise relating not just to UK permitting and waste management but also knowledge of the application of WM permitting across the EU. She will understand potential bottlenecks in the permitting /planning waste system and how to get around them and hopefully work with and influencing the EA and similar bodies to fast track site permitting for the DMG. PHE and Peel will need this knowledge and contacts to ensure any fast DMG expansion plans within the UK. It should also help alter the potential mindset and ensure that the DMG process is not lumped into the incineration category. Just as important may be the ability to ensure that the feedstock range increases and high gate fee items such as medical waste could face less onerous permitting if the DMG is to be used.
Great appointments!
These are my views only and do not represent investor advice.
Wolves
Dr A
I would be happy to see the existing contract with Peel terminated if they are unable to complete with the currently extended deadline. This inertia has gone on too long. If PHE was to withdraw then Peel would either have to renegotiate or find an alternative. Peel has been involved with PHE for a long time but the expectation of multiple planning applications has not materialised. PHE's BOD need to be pro-active and have that plan B ready. Having a Peel person as NED may originally have appeared to be a good thing but now I'm not so sure.
Could PHE's decision to be a licencing company rather than its own technology implementer now be holding the DMG role-out back? I think so.
Where is the notice of a new CEO? Maybe its impossible to find anyone with energy and sufficiently dynamic who can take PHE to where it should be. If so, I would try a bit harder because there are people with these attributes out there.
Have PHE missed the opportunity to raise additional finance to fund the first DMG themselves? Could they still do it?
My biggest concern 'Peel Pace'. Is the apparent drag that currently appears to exist going to be the model of the future. A slow torturous journey of complex plastic waste parks? Taking PROTOS as an example, couldn't the DMG have been built with an interim solution regarding waste feedstock. The front end was proof of DMG working, the other parts are add-on's.
My take re UK first DMG implementation is that so much could have been achieved, but so little has been achieved. BOD, energise please and justify to your shareholders the remuneration you are receiving.
Wolves
bertmonkey post 17:07
Exclusivity agreements are fine if both parties hold mutually beneficial positions that are sustainable and include the correct controls and balances. Where they all go wrong is when they have been poorly worded, incomplete or an oversight has occurred. Penalties for non compliance is a must have, along with timescales. The ability to review and where necessary legally extricate oneself from the agreement is also important. Agreements should be time limited with reviews built in to assess progress.
The best time to enter these agreements is from a point of power and strength. I don't believe PHE will have that power until the DMG is fully operational. I will be very happy if no further exclusivity agreements are entered into prior to that first DMG becoming operational.
I can understand that some other investors may wish to maximise the number of DMG's in the short term but being in this for the long run, I would rather put longer term potential riches as a higher priority compared to short term crumbs.
Wolves
Val Post 11:28.
I believe your post is a bit misleading. Yes at 7.5p, c.£30m would be the HUI valuation on paper only. As there was a pre IPO fundraise and now an actual IPO, up to c.24% of the shares may be in third party hands (this includes any HW purchased.) I am assuming that £4m is raised in IPO. This implies that the original investors who staked £600k have on paper increased there value to £22.5m and maybe more if they participated in either two additional fundraises. This represents a c.£22m increase in value to the original investors only if it is realisable by selling their shares at 7.5p.
How the markets will value HUI with its, c. £4-5m in current assets, c. £.3m in intangibles and the potential that DMG represents is anyone's guess, I suspect short term and long term may be very different. Is this the last time the door will be opened to PI's?
DYOR
Wolves