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.?
Just posted this on the AFC board but feel its as relevant here.
I think the contract is excellent news. AFC have (eventually) its first commercial contract, its with Powerhouse Energy which have been waiting patiently since 2014 with a £50,000 deposit, its based in England so if any problems AFC technicians can be there that same morning with knowledge and parts (worst case scenario) and not jumping on a flight to the other side of the world with language barriers and no spare parts.
Also, a lot of investor attention will be bought to AFC at Protos looking for Fuel Cells AND separately Gasification which I believe will raise twice as many eyebrows.
One last thought, if/when these companies successfully pair up this will mean for every sale of the G3 UHT, an AFC Fuel Cell could be rented or purchased for maximum results.
This was always Peter Bonds vision since roughly 2010 and Powerhouse were then named Bidtimes. (I have been in both these shares a long time for every rollercoaster ride)
Powerhouse Energy (PHE)
News over the last few weeks has been very Ying and Yang in relation to Powerhouse Energy firstly came the news as it repaid a £3.4m loan note balance to Hillgrove via a mix of funds raised in a capital raise and the conversion of debt to new shares. Then came the news that the item that was shipped without a destination in mind to showcase their waste to energy module which incorporates the latest advances in material technologies and electrical and thermal efficiencies to convert waste to energy. It has been billed as the companys flagship reactor and has been completely redesigned, re-engineered, and constructed for commercial roll-out. What are the longer term plans for the company? Is this a longer term hold for investors now with the repressed share price but with a cleaner bill of health?
As we know, AFC ran out of cash very recently and was forced to place at 10p, cratering the share price well over 50% from the date that I forecast the placing.
You would have found me recently "upsetting people" on the CloudTag thread as well as on the Advanced Oncotherapy thread (ADVFN); both cases where I am heavily short. I am also currently "spouting" away on the EVRH thread. Whilst my short there is only small at the moment, I am simply waiting for the right moment. Feel free to come over and point out why my comments are factually wrong. Ideally I need well-reasoned argument to make me change my mind, childish mud slinging is not going to achieve anything.
Anyone has a question or concern can email Keith Allaun directly he's very good at replying.
Its a question of who you choose to believe its not rocket science.. or maybe it is? Oh I dont know its all so confusing these days..
"At the date of this document, PowerHouse has already secured unconditional sales contracts which the Directors believe will generate revenue for the Enlarged Group in 2010-11."
If six years ago PHE had "secured unconditional sales contracts" and yet today it has secured none then surely PHE must be more than six years away from breaking through rather than the 12 months that you suggest?
2. A typical gasification site can take many many years to (a) get though the initial project phase, (b) get planning, (c) be built, to finally (d) start producing revenues. Take, for example, the Avonmouth case:
This was opened in September 2011 but the project phase started in 2002!
All this suggest top my mind that PHE is year away from "breaking through" and that's before any proof is offered that they actually have a product!!!
PHE remains a STRONG SELL, it has no demonstrable product, a hopelessly weak balance sheet, a track record of publishing puff-piece RNSs and a long history of being used as a play thing by market manipulators!
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.