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Hi Stumbler, I share yours and operastar's frustration regarding the time it has taken to get to the current stage PHE appears to be at. PI's have had to undergo a significant dilution of shares but if this comes good it will have been worth it. Research is normally the key and IMO there is still plenty going on with PHE and it's connections. I am still very positive but that is a personal view and should not be taken as investment advice.
Dr.A , I only partly agree with your post 22.06 today. I certainly haven't read a contract or RNS which states that it is purely Peel's money. The terms of any JV have not been published, I certainly don't know if the financial close will result in a JV between PHE and Peel or any number of additional partners. Another unknown to me is if the £10m will be used to fund long procurement items in PHE's name only until the Financial close is agreed, or in the JV name and if the £10m represents a loan to the JV, a bond held in an escrow account for suppliers or an actual share in the JV? As this is the first project, if profits are to be shared, will any contract identify that the share of costs do not correspond to the percentage share of reward?
PHE may not have any option but to take Peels terms in any JV. I hope however that whatever the outcome it is fair to PI's. What options exist to PHE if Peel decides not to complete on the PROTOS site. Are there any escape clauses for PHE and how/when can they be triggered? Does PHE have a plan B? Just a few points to mull over!
I seriously want to see that financial close, contracts in place and some action on the site to confirm it is all going ahead. End of March, I hope so.
Wolves
Sorry if already posted but maybe of interest to some:
https://find-and-update.company-information.service.gov.uk/company/06708968/filing-history
https://find-and-update.company-information.service.gov.uk/company/08361548/filing-history
https://find-and-update.company-information.service.gov.uk/company/07979088/filing-history
Are these another few pieces placed in the jigsaw?
Wolves
NutHazard
Coal was mentioned at an AGM several years ago. At that time KA stated that PHE would not be going down that route due to environmental concerns. It appeared a definite no, that doesn't mean thinks haven't changed though.
I've always wondered if there is a future in exploring and cleaning up the old **** heaps from our industrial past. The link below provides an example where the spoil heap contains up to 17% coal.
https://www.matec-conferences.org/articles/matecconf/pdf/2015/07/matecconf_acmme2015_01004.pdf
I expect recovery cost are pretty high and maybe more suited to processes more akin to PQE & QFI technologies.
Wolves
Tog91
If you use the following link it will not only take you to the PHE submission but all 89 submissions. It is well worth a look and a review of what has been submitted and by who. Even HSE have got in on the process.
https://committees.parliament.uk/work/890/the-role-of-hydrogen-in-achieving-net-zero/publications/written-evidence/?page=2
Anyone who is new to the Hydrogen economy and would like to know the potential direction of UK Government travel should maybe spend a couple of hours reading these submissions.
One of the aspects I found most interesting was a number of companies who I would have expected to have provided information but didn't. This to me begged the question as too how seriously they were taking the changes that I expect are coming.
Wolves
Tame2017 wed 19:21:
I don't agree with your post. IMO BP is both acquisitional and innovative. It spends c. $350m pa on R & D. They have a most modern and large research facility at Sunbury- on -Thames.
https://www.bp.com/en/global/corporate/what-we-do/innovation-and-engineering.html
https://www.statista.com/statistics/1090552/number-of-bp-patents-by-filing-year-and-status-worldwide/
but to balance this:
https://www.bp.com/en/global/bp-ventures.html
Like many oil companies they are changing / repositioning their focus of operations for the modern world. Whilst acquisitions will generally attract the headlines, often due to the amount of money involved , IMO R & D innovations generally go under the radar unless they relate to massive leaps in technology or application where they may be reported more widely.
Does the DMG potentially fit into the future operations of a transitional major oil company? I have no idea. Should it? I can see lots of synergy in both obvious, but also more obscure areas of the future and existing businesses. Thankfully PHE hasn't been taken out before what I believe its true potential becomes visible to the masses.
Wolves
Picton 10:34 - This is not an isolated case, we have plenty of issues in the UK to.
Just for info:
https://www.newstatesman.com/politics/environment/2019/10/secrets-shore-landfill-rubbish-laid-bare-sea
There is plenty of information on these type of sites, and as you would expect including studies by the Environment Agency and Natural Resources Wales.
Wolves
Mr008 - Do you regard geology as one of your strong points?
Regarding your 16:30 post today, maybe you would like to enlighten us all as to your geological qualifications so we can assess the merits of your final sentence?
I believe that Alba's RNS today stating:
"Given only the surface expression of the exposed quartz veins was sampled in places and given also the nature of the geological setting in the Dolgellau Gold Field (DGF), where gold mineralisation is irregularly disseminated and exhibits high nugget-effect, Alba is currently evaluating the possibility of follow-up exploration of the intersected veins by digging pits in order to obtain a much bigger sample and more representative geological information."
Were you dreaming of big visible nuggets imbedded in the quartz that could be viewed by scraping back a bit of soil? I prefer Alba's approach and knowledge regarding the claims they currently have licence to explore. This was IMO a good RNS, explaining what is going on and why. A very measured approach.
There of course is always a risk with permitting re NRW. However the measures regarding pumping, cleaning and discharge of mine water is unlikely to have been announced in this RNS unless advice had previously been sort from NRW as to the measures that would be acceptable.
As always DYOR.
Wolves
By reading into Shell job adverts?
DYOR.
Wolves
Qualia144 - Whilst Patents can protect they can also be very enlightening regarding a companies activities and competition. I look at patents to ensure I have an idea of what is going on both in UK and USA. I also keep an eye elsewhere. It is like a radar, an early warning system but in a positive way for an investor.
Why not start here:
https://www.ipo.gov.uk/p-pj
Make your own decision regarding the benefits.
Wolves
Qualia144 - DR and PHE have been using the G3 to test various scenarios of feedstocks and outputs. This is 3/4 years of research data. Don't underestimate how invaluable this is to the control systems. PHE/DR holds this knowledge and I assume different feedstocks will require different variables to maximise the monetary value of the outputs being produced. In addition those outputs should be consistent with the use that they will be put to. In other words various hydrogen % blends for different applications. Why share this information with competitors when you don't have to.
I am sure that DR is on top of the IP and will apply for IP when it is relevant and appropriate to do so. I am very comfortable with PHE previous responses to the question on IP retention and trust in DR and the BOD judgement on this as they are the only individuals with all the facts and figures.
I suggest that anyone who is in doubt over IP, should read all the information on the PHE website. As always DYOR and don't rely on other's.
Wolves
Tame2017
Dr A included the following from Tim Yeo - "The board decided not to wait for the completion of Peel's negotiations to fund the SPV which will build our first commercial-scale plant because, as stated in the RNS, we identified commercial, technical and financial advantages in moving faster than was previously possible. Our confidence in our technology makes us keen to speed up the process of deploying it at home and abroad."
also as per the PHE website regarding the £10m fundraise:
https://polaris.brighterir.com/public/powerhouse_energy/news/rns/story/w0yljlx
"Use of funds - The Company will use the net funds from the Fundraising to advance the project procurement and delivery of long lead items before the formal financial close of the first commercial scale DMG installation , thereby protecting the targeted timeline for the Company, and advancing the completion of the Company’s DMG technology. "
I think that this is pretty clear.
Also regarding income:
"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, and will allow Powerhouse to significantly advance its overall business plan. Importantly, commissioning the first commercial unit will provide a reference site for potential overseas customers and partners. It will also provide the Company with greater beneficial technical exposure in the project delivery phase.
The Directors consider that these steps are beneficial for the Company's future and are likely to bring forward the date on which licence fee income, which is expected to constitute the principal portion of the Company's future revenue, will start to be received."
I hope this helps to answer your questions however as ever DYOR.
Wolves
Dr A - Thank-you for writing to Tim Yeo & also providing his response on this BB.
On 4th December 2020 PHE published a notification of Directors Dealings.
https://polaris.brighterir.com/public/powerhouse_energy/news/rns/story/xjq0ygr
Tim Yeo & his wife added a combined total of 2,126,491 ordinary shares in PHE into their SIPP's to a value of £60,605. I asked myself the question, why would anyone wish to invest £60k in a pension, using up the LT allowance? Expectations of share price growth or dividends? My conclusion was that he has a level of commitment & confidence in the future of PHE.
In the recent placement, the White family also continued to show their support to PHE. Whilst the shares were at a discount to the market price, according to the published information, the White family contributed a further c.£2.6m of new/additional money to maintain their share percentage. The placement was over-subscribed, if the White family had wished to reduce their risk in the PHE they probably could have, but they didn't. For me at least that speaks volumes!
There will doubtless be some twists and turns along the way but IMO DR, TY and the White family are steering this company in the right direction. I don't agree with everything that has happened with PHE but I continually re-evaluate based on the future, with recognition to the past.
One aspect that attracted me to invest in PHE was the modular approach which enabled parallel units to operate at the same site. Whilst infrastructure and waste collection patterns may limit the number of units per site, it is feasible with the 25t scale approach that in some cases multiple units could be deployed in parallel. How much additional work & cost would be involved in multiple deployments to the same site depending on the consistent quantity of feedstocks available. My understanding is that each DMG can be tweaked so that a variety of feedstocks could be targeted & each specific to its own DMG unit to maximise outputs. Think of the increase income that PHE could gain from targeting these type of opportunities throughout the world. Whilst lower grade plastic feedstocks or even a completely different feedstock may be less profitable to run, at the same time it may make economic cense based on overall profit margins. The licence fee could be adjusted accordingly.
Another factor is that much is made of single life or end of life plastics as the feedstock. Unless there is specific government legislation to the contrary then plastic disposal is IMO more likely be based on economics so that even multi use plastics are diverted from the plastic recycling processing loops or ground fill disposal to be used as DMG feedstocks.
If the c.£10m placing money is used as collateral for orders & getting the build underway then I am all for it. PHE BOD must ensure that we don't end up with a pile of parts, no money and a 3rd party wanting to renegotiate terms and funding arrangements.
Wolves
cjmorley - "third-party processing facility has validated the Company’s process flowsheet".
Taken from Google "Validate, confirm, corroborate, substantiate, verify, and authenticate all mean to attest to the truth or validity of something. Validate implies establishing validity by authoritative affirmation or factual proof".
Alba has already provided info regarding what and how they are doing things and from their statement, taking it at face value and in my opinion they are confirming that they are on target. The word "validated" would otherwise have been incorrect. DYOR.
Wolves
Hi Kenny - Ships, planes and automobiles. Plus a few other uses.
This article is on Hydrogen and Planes.
https://physicstoday.scitation.org/doi/10.1063/PT.3.4632
Wolves
Stokey12 - This is part of an email that I received from BEIS.
Powerhouse Energy is well known to BEIS and they participated in our recent Hydrogen Supply Competition (www.gov.uk/government/publications/hydrogen-supply-competition) which was aimed at accelerating the development of low carbon hydrogen supply solutions at scale. We award grant funding through established competitions to allow a level playing field for different potential hydrogen supply solutions to be considered.
Although they were not one of the winning projects, we recognise the contribution their technology could make in addressing the twin problems of plastic waste and hydrogen production. We wish them every success with their proposed plant.
Wolves
Not sure if this has previously been posted.
https://hyundai-hm.com/en/2021/01/06/hydrogen-ecosystem-for-emission-free-mobility-wins-watt-dor-2021/
Have a look around the site.
Wolves
Happy New Year Kenny.
Please keep up the posting on this and other shares you have an interest in. I for one appreciate your posts and links, just as I also appreciate both for and against arguments that make me think.
BR
Wolves
Dr.A Have a happy and prosperous 2021.
I completely agree with your post 11:33 today. As a LTH I have watched my percentage share in the company be whittled away through various placements and the W2T takeover. I have been both included and excluded from some of these placements. When I have been excluded I have tended to buy additional shares on the open market to the value of what I would have invested direct. Whilst I support the need for raising these funds I object to how selective some of the raises have been as I believe they should have been completed as Rights issues. (I also accept that at times PHE may have struggled to obtain the full funding by just proceeding with this singular option.)
At the last AGM I voted against Resolution 10 as a point of principle and to send a message that at least one shareholder was fed up of being constantly diluted. My position on this hasn't changed and the BOD will have lost my backing if they do anything other than offer shares on the basis of a Rights issue if further funding is required.
Wolves
Hi Telephoneman , Happy New Year to you and all other LTH's and investors.
The warrant's that were provided to Peel could be exercised for about £10m limited by time. They are currently at a very attractive discount to the current SP. Assuming they will be exercised, do we know if the £10m is to be used for general operational cash burn or will they be used for R & D or investment opportunities?
ATB
Wolves
NFLT 14:05 - I haven't asked this specific question for several years, however when last it was asked I was informed that the tech could be smaller. The issue would be the economics of it being smaller in terms of feedstock and also monetary income streams. There are some waste streams with considerably higher gate fees but these also come with increased / more onerous compliance and monitoring. There may also be issues with the method of feed and a redesign to cater for specific feedstocks during gasification.
I suspect that once the first commercial DMG is operational a full review we be undertaken of the current DMG offering and the feasibility of a larger unit would be considered. It would be interesting to know if the Peel agreement has additional terms to it that the licence fee per annum for each Peel DMG increases in comparison to the DMG inputs and outputs.
Wolves