Powerhouse Enrgy Grp Agreement with Project Development Consultant
January 18 2017 - 1:00AM
UK Regulatory
TIDMPHE
PowerHouse Energy Group plc
("PowerHouse" or the "Company")
Cooperation Agreement with Project Development Consultant
PowerHouse is pleased to announce 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 GBP20,000 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 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.
For more information, contact:
PowerHouse Energy Group plc Tel: +44 (0) 203 368 6399
Keith Allaun, Executive Chairman
WH Ireland Limited (Nominated Adviser) Tel: +44 (0) 207 220 1666
James Joyce / James Bavister
Vicarage Capital Limited (Broker) Tel: +44 (0) 203 651 2910
Jeremy Woodgate
IFC Advisory (Financial PR & IR) Tel: +44 (0) 203 053 8671
Tim Metcalfe / Graham Herring / Heather Armstrong /
Miles Nolan
About PowerHouse
PowerHouse is the holding company of the G3-UHt System Ultra High Gasification
waste to energy systems.
The Company is focussed on technologies to enable energy recovery from
municipal waste streams that would otherwise be directed to landfills and
incinerators; or from renewable and alternative fuels such as biomass, tyres,
and plastics to create syngas for power generation, high-quality hydrogen, or
potentially reformed into liquid fuels for transportation. These waste to
energy systems aim to provide the "best solution" to the on-site energy market.
PowerHouse is quoted on the London Stock Exchange's AIM Market. The Company is
incorporated in the United Kingdom.
For more information see www.powerhouseenenergy.net
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January 18, 2017 02:00 ET (07:00 GMT)