PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process

PowerHouse Energy Group

LN: PHE

£8.4m market cap

0.45p last close

PowerHouse Energy has developed an innovative, distributed waste-to-hydrogen and waste-to-energy process, which takes advantage of the growing global need for distributed hydrogen production, as well as the distributed grid and local wire power delivery.

Investment summary

PowerHouse Energy’s innovative, distributed waste-to-hydrogen technology satisfies the joint needs of powering fuel cell electric vehicles, finding an alternative means of waste disposal to landfill or incineration and providing a predictable form of clean energy to complement intermittent supplies such as wind and solar. The hydrogen and electricity are produced close to point-of-use, saving transportation costs and reducing transmission losses and the associated carbon footprint. The company has a pilot system near Ellesmere Port, Merseyside, and intends to commence commercial production in FY18.

Industry outlook

PowerHouse has the potential to drive rapid growth subject to securing appropriate funding. We estimate that c $2.5m of forecast debt at December 2014 has still to be financed. We estimate that 10 50tpd reactors built, owned and operated by the group would generate $47-72m revenues annually including tipping fees and environmental feed-in tariffs, depending on the feedstock used and wholesale electricity prices. This represents $35-59m incremental operating profit.

Last updated on 19/02/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (US$m) 4.5
Forecast gearing ratio (%) 192
Price performance
%
1m
3m
12m
Actual (16.7) 18.4 (10.9)
Relative* (18.9) 15.5 (9.6)
52-week high/low 0.7p/0.3p
*% relative to local index
Key management
David Ryan CEO