Powerhouse Energy Group Plc (LON:PHE) has today announced that it has entered into a Cooperation Agreement (‘the Agreement’) to appoint Waste2tricity plc (Waste2Tricity) as its Project Development Consultant on an initial 24 month contract. The purpose is to cooperate in the development of multiple waste to energy (WTE) plants in the UK using the PHE G3-UHT gasification technology (“G3”), subject to both parties meeting specific performance criteria. The contract may be extended if development milestones are met and is subject to cancellation with a 90 day notice period.
The terms of the contract are such that Waste2tricity will initially be compensated in PowerHouse shares for its fees of £20,000 per month to be issued on a monthly basis. 51 per cent. of the shares will be restricted until a final investment decision on a commercial project is reached. Subsequent to successful project development, and after each party recovers its project-related costs (including PoweHouse recovering the expense of the shares issued,) the profits of the project will be shared 50/50. In the event it becomes necessary, each party will provide the other with specialized, externally sourced, personnel at cost + 5 per cent.; such cost to be recovered from the project related costs as defined above.
Waste2tricity has a history of initiating projects both in the UK and in Thailand and PowerHouse had previously signed an exclusive distribution agreement for Thailand with Waste2Tricity, Thailand, a subsidiary of Waste2Tricity.
Waste2Tricity’s staff and Board consist of well-respected members of the WTE and Project Engineering communities; Waste2tricity’s significant shareholders includes AFC Energy PLC. PowerHouse has previously announced the intended acquisition of an AFC Energy fuel cell (04/04/2014) for demonstration with PowerHouse derived Hydrogen.
The Company believes that PowerHouse and Waste2tricity will be able to identify and secure a suitably accessible, and highly visible, demonstration site for G3 in advance of its arrival in the UK. The Agreement seeks to successfully demonstrate the use of G3 in a commercial installation as well as to explore the potential for the integration of AFC Fuel Cell technology, to which Waste2Tricity has an exclusive WTE related licence in the UK, with G3 for ultra efficient generation of electricity.
Subject to successful commercialisation, each of PowerHouse and Waste2Tricity will have a right of first refusal for WTE projects using each other’s technology for projects up to 1,000 tonnes of waste per day. The continuation of the right of first refusal is subject to a to be agreed minimum number of installations over each 24 month period.
Keith Allaun, Executive Chairman of Powerhouse Energy Group Plc said: “We are delighted to have developed this relationship with Waste2Tricity over the past several years. With their involvement we now have ‘boots on the ground’ in the UK. They are extremely well-connected, knowledgeable about the industry, and we’re eager to work with their experienced and talented staff. We are confident that together we will be able to deliver successful projects far more rapidly than working independently.”
John Hall, Managing Director of Waste2tricity said: “This is a great opportunity for Waste2Tricity to get involved at the early stage of commercialisation of a product that we believe will have an enormous impact on the distributed waste conversion market, distributed power market, and in the future, the distributed hydrogen market. In addition to working on deploying the systems we will also be working with PowerHouse to endeavour to find ways to reduce the manufacturing costs especially with our existing relationships in Thailand.”
The Company will keep the market apprised of any future developments relating to the agreement between PowerHouse and Waste2Tricity.
