A long time indeed between PHE and AFC, 7 years now and still going, lol.
I managed to average down my holdings to 0.62p a share so very happy in the green at the moment but holding long term. I love the fact Keith Allen keeps his investors upto date with all developments and where we go from here. A breath of fresh air.
In the words of Del Boy "Monge Taut my son, Monge Taut"
Id just like to post my thoughts on the Zak Mirs interview. https://www.powerhouseenergy.net/making-hydrogen-waste-new-disruptive-technology-powerhouse-energy/
Of particular interest from 10:10, Keith states that not only have PHE got first mover advantage but they are also in conversation with major players in the transportation industry, both industrial and consumer. Phe are looking at models where some of those players partner with PHE to provide the Capex for the build-out of the G3.
Earlier in the interview Keith describes how all the initial installations of G3s will be generating electricity to start with and then when the demand arises for automotive hydrogen the G3s in suitable locations can be fitted with the extra kit for hydrogen production and dispensing and that the earnings from hydrogen sales will be 5X that of electrical sales.
So back to the major players in the transport sector, why would they want to put up the cash to roll this out? Or to put the question a better way, why wouldnt they want to put up the cash to roll this out.
The fact is, they need the infrastructure, and in my opinion the margin for PHE when producing hydrogen, is so high that they can offer a deal whereby the partner puts up the Capex for the roll-out in return for cheaper hydrogen.
Lets imagine a major British haulage company wants to get ahead of the curve and introduce hydrogen HGVs, it would be in their interest to finance the capex of the G3 in return for cheaper hydrogen, remember hydrogen is currently twice the price of petrol mile for mile, in this way the haulage company might be able to secure a deal whereby their fuel costs are as cheap as or even possibly cheaper than DERV. Hydrogen is currently £10/kg and PHE could still make excellent profits selling at half that price.
Similar type deals could be stuck with councils, supermarket chains and other large manufacturer/distributors.
Hi BristolDan - we've been here for a long time now. Good to see some upside at last but a long long way to go to recover original purchase price >10p. There's a lot of dilution in between of course. This time next year Rodney.....
PowerHouse Energy Group plc
(?PowerHouse? or ?the Company?)
G3-UHt Demonstration Update
PowerHouse Energy Group plc (AIM: PHE), the company focused on ultra high temperature gasification waste-to-hydrogen, waste-to-energy, and the creator of Distributed Modular Gasification? (DMG) systems, is pleased to announce that after the recent successful re-commissioning and high-temperature operation of the Company?s G3-UHt DMG module (the ?Unit?), the Company has commenced a programme of demonstrations of the technology, testing of various feed stocks and operational parameters, and in-depth analysis of the synthesis gas (syngas) constituents.
It is expected that the demonstrator Unit at Thornton Science Park will be run for an extended period during August in anticipation of a full week of operation in September. During these operational segments the engineering and development teams will be collecting data from a variety of sources integrated throughout the Unit. Subsequent to operation the Unit will be thoroughly inspected and all relevant data reviewed.
Concurrent with the regular operation of the demonstrator Unit, collected data will be fed into process models for the basis of design for the first commercial unit to be constructed. The engineering team has begun this design effort.
It is anticipated that public demonstrations for interested parties, including investors, will be held in September and the Company will provide further details in due course.
David Ryan, Powerhouse Executive Director of Programme Development and responsible for overseeing all Company activities at Thornton Science Park, said: ?This is the beginning of an exciting time for PowerHouse. We now have the tools, the talent, and the G3-UHt in operation to allow us to develop DMG into a commercial reality. We are taking a thoughtful and conservative approach to getting the full-scale design right first time. This will save us development time and cost in the long run.
This cannot mean reducing effort, indeed, we are growing the team to facilitate 24/7 operations in the near term
Hi Artji, yes it has been modelled, based on historical testing results that a syngas with up to 75% hydrogen is possible when using appropriate feed stock and fine tuning, as apposed to the typical 45%.
Have you read the Align report? It's well worth reading.
Thanks for the post on 28th July, t'man, giving a breakdown of possible income streams. But I'm a bit confused about all the gas analysis flying around. You state 1 tonne of hydrogen from 25 tonnes of waste, and hydrogen content up to 75% of the syngas, but in one interview KA said the typical mix of the syngas was 45% hydrogen, 45% carbon monoxide, the rest mostly methane with a very small amount of carbon dioxide.
This may have been explained on the LSE board but, like others, I rarely go there due to the amount of petty point-scoring & bickering that goes on. So please keep posting here as well.
Yes it's a madhouse over there at the best of times, it's even worse at the moment after the excellent broker note. My filter list is long but you still get the inane responses by posters like Boo80.
Still, shouldn't last too much longer, testing and demonstration days should be starting soon, apparently the council did a site visit last week.
There's also a solid band of long term holders who have a good chunk of the Co between them.
Just making electricity will make PHE a great dividend paying company, selling hydrogen for FCEV's will take it to a higher level and speed up the uptake of FCEV's.
Hi tp man, yeah I've seen that on lse board but only glance through the posts as there is so much bickering. I know we've got jak on hear but at least he only pops up Now and then, just as boring as the rest tho. Can't believe some of the words you can't use on this board 3rd time typing lol.
Promoters of gasification and pyrolysis schemes, sometimes collectively called "Advanced Thermal Treatment" schemes, regularly make bold claims about the technological, environmental and financial performance of their proposed facilities with a mixed waste feedstock. In reality, where such configurations have been attempted they have either failed to live up to these claims or operators remain suspiciously quiet about reporting actual performance.
Because companies do not like to talk about their failures it is often hard to find out what went wrong. For example, Air Products remain tight-lipped about the serious high-profile problems they encountered at Tees Valley.
Gasification and pyrolysis constitute some of the riskiest technologies in the waste industry and are synonymous with bankruptcies, failures and broken promises. This perception is well deserved, with the lack of examples of success starkly contrasting with a litany of failures.
PHE's technology still hasn't been demonstrated and yet we know that it failed as pyromex, it failed in Munch, it couldn't be sold in Thailand and it couldn't be sold in Australia.
It is absurd that anyone would consider investing in a company with:
* A track record of repeated and regular failure,
* A weak balance sheet with material outstanding debt and insufficient capital to implement its business plan,
* A history of regular and repeated share issuances, and
* An obvious need to raise more capital
Hi P2P and pond1, completely understand how you feel after the slower than expected AFC.
Here's a post of mine from the LSE board, just in case you don't visit there, I first posted it a few weeks ago and it was pretty much confirmed by yesterdays broker note. So although you are quite rightly wary due to AFC, I would suggest you do sufficient research to ensure you don't make the opposite mistake with PHE. (AIMHO)
A reminder of the vast potential of this company.
Further to my post re. how much hydrogen can we produce from a 25t/d G3, Keith has been kind enough to confirm that their modelling, based on historical results of short term testing shows 1 tonne of hydrogen from 25 tonnes of waste. This of course has to be confirmed once the 25t/d G3 is up and running but so far their modelling has proven to be quite accurate. It is also reliant on the type of feedstock and correct tuning of the system.
So a 25t/d G3 is capable of fuelling 200 cars a day with 5kg of hydrogen each, to give a range of 500km, that in my book is extremely impressive.
Even more good news, modelling indicates that the parasitic load will be covered by the power generated by the remaining syngas. Again this does need to be confirmed in the upcoming 25t/d G3
So PHE start off by generating electricity with Jenbacher's and we now know from the latest presentation that a 25t/d G3 will generate profits of £0.725M/year before tax.
Once the AFC fuel cell is proven to be reliable it would be possible to install extra kit to extract and clean up hydrogen from the syngas, this could be as much as 75% of the syngas and at a purity of 99.9995%.
The AFC fuel cell should be capable of producing around 50% more electricity than the Jenbacher. Don't forget the remaining syngas has been modelled to cover the parasitic load.
We don't know the economics of the fuel cell yet bit there is always the chance that the power generated by fuel cells may attract a higher value due to no CO2 being emitted from them.
The third step is fit a fuel cell vehicle refuelling rig and if 1 tonne of hydrogen can be produced, as has been modelled, we know it is currently selling at £10/Kg.
So that's £10,000 per day for 333 days a year + £750,000 for the waste gate fees = £4,080,000 before OPEX and tax.
No idea how much the extra kit is to create this income stream but it looks like there is plenty room in that extra income to pay for it.
The beauty is that the cost of the hydrogen highway infrastructure that was going to cost many £B could in fact now be self-funding.
Just think about that.
This could be like Afc when it took off them years ago from about 10p to 80p, obviously not going to get 80p but could stretch its legs too 10p. Lot of people with BIG holdings on this share so not many about. Looking stronger week by week.
Hi Artji, yes , good steady progress going forward, hopefully with regular updates.
I'm afraid I won't be able to make the open day due to personal circumstances but I look forward to reports from those able to attend.
Thanks for the link, t'man. Not too much that's new, and can expect a few relatively quiet months as engineering & cosmetic design changes are implemented and necessary approvals attained, while at the same time the manufacturing logistics are put in place. Nice to have that detail about what to expect going forward.
Looking forward to the investor visit to Chester, hope I can make it. Maybe meet some of you there.
The re-commissioning of the Companys G3-UHt unit has been completed, with the successful production of gas (syngas) from the system. The G3-UHt unit operated at a temperature of over 1000 degrees Celcius, demonstrating its capacity to gasify any historically difficult waste material and generate synthesis gas.
The Company anticipates that several external cosmetic improvements will be made to the G3-UHt unit over the coming period and will continue the development of its automation processes.
Separately, the Company has been invited to join the North West Hydrogen Hub, whose members include companies such as Peel Environmental, Linde Group (BOC,) Ineos, AFC Energy, and the Thornton Science Park, to explore how Distributed Modular Gasification� (DMG) can be a key to unlocking the distributed Hydrogen Economy.
I appreciate we knew some of this was coming, but still good to see it released to the markets.
PowerHouse is pleased to announce that David Ryan has agreed to serve as the Company?s Executive Director of Programme Development with immediate effect.
David was appointed Non-Executive Director of the Company as announced on 21 February 2017 and was previously the former CEO and Managing Director of Thyssenkrupp Industrial Solutions? Oil & Gas Business Unit for the UK. He has over 30 years of increasingly complex engineering, business development, and project management experience.
Keith Allaun, Executive Chairman of the Company said, ?David?s impact is already being felt at PowerHouse. In the past six weeks we have made significant improvements to our commercial engineering processes, the identification of appropriate partners to augment our growing team, and are poised to leverage his full skill-set to our benefit. His experience delivering multiple projects concurrently, with world-class teams, creating outstanding results, provides us with tremendous confidence in our ability to bring the Distributed Modular Gasification? (DMG) process to market in the near term. His contributions to the G3-UHt recommissioning project, working with our Australian engineering team, will allow us to grow and maintain our knowledge-base leadership in distributed, modular, ultra-high temperature gasification.?
David Ryan, newly appointed Executive Director, Programme Development, of the Company said, ?I?ve rarely felt as enthusiastic about the many potential applications of a technology the way I do about the G3-UHt, and DMG? in particular. We have the opportunity to redefine the Waste-to-Energy industry and I?m confident that the world will soon be paying notice. Working with this team and the Board of PowerHouse, I believe we are poised to achieve fantastic results.?
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