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

Opening the door to a pipeline of projects

Powerhouse Energy Group 15 July 2020 Flash note
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Powerhouse Energy Group

Opening the door to a pipeline of projects

Result of general meeting and issue of equity

Alternative energy

15 July 2020



Market cap


Net cash (£m) at end December 2019


Shares in issue (including shares issued for W2T acquisition)


Free float (including shares issued for W2T acquisition)




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Share price performance

Business description

Powerhouse Energy designs, delivers and licenses plastic regeneration processes for the generation of hydrogen and electrical energy. It also provides associated customer engineering and testing services, and operational support for applications in the UK and across the world.


Anne Margaret Crow

+44 (0)20 3077 5700

Powerhouse Energy Group is a research client of Edison Investment Research Limited

On 14 July Powerhouse’s shareholders approved the proposed acquisition of former development partner Waste2Tricity (W2T). This clears the way for Peel Environmental to lead the engagement with all potential end-customers in the UK seeking to deploy Powerhouse’s distributed modular generation (DMG) technology as well as developing DMG plants on its own sites. Peel is targeting the development of at least 30 DMG plants across the UK, each of which will potentially generate £0.5m in annual licence fees for Powerhouse.

Year end

Revenue (£m)


































Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Peel, W2T and Powerhouse have already completed most of the steps required to start construction of the first commercial scale waste-to-energy plant deploying DMG technology. This is at Peel’s 54-acre Protos energy hub site near Ellesmere Port in Cheshire. Protos is one of Peel’s proposed ‘plastic parks’ where waste plastics are either recycled or regenerated into power and hydrogen. Peel sees DMG technology as a key enabler to ensure that plastic from these sites that cannot be recycled does not end up in landfill. Powerhouse is focused on ensuring that this first commercial scale plant is commissioned and starts operation during FY21. Demonstration of successful operation at this site is likely to kickstart adoption of the technology on other sites in the UK and overseas.

Completion of the acquisition removes the obstacle to Peel exercising the exclusivity option defined in the agreement with Powerhouse announced in March 2020. Under this agreement Peel will pay Powerhouse £0.5m as a one-off fee for the exclusive rights to develop DMG in the UK, with an additional £0.5m annually per site payable when each plant that Peel develops becomes operational. The one-off exclusivity fee will probably be paid immediately prior to Peel closing the financing for the special purpose vehicles being created to fund construction of commercial scale DMG projects.

The acquisition has been settled through the issue of 1.44bn new shares (c 40% of the enlarged share capital, or c £58m at the current share price). For other details of the transaction, please refer to our update note published on 6 July 2020.

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