POWERHOUSE ENERGY GROUP PLC - Successful Production of Syngas

31 July 2017

PowerHouse Energy Group plc
(“PowerHouse” or “the Company”)

Successful Production of Syngas

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 the Company recorded a maximum peak flow rate of over 50 m³ per hour of synthesis gas (“syngas”) having successfully completed the rebuilding and enhancement of the Company’s G3-UHt gasification reactor at the Thornton Science Park.  This is the second successful phase in the operation of the G3-UHt unit in the UK and the first at the Thornton Science Park.

Since the re-siting of the unit at Thornton in early May, the technical team have been working on integrating the G3-UHt system into the Energy Centre facility at Thornton, as well as aligning the system and the utilities to take best advantage of the research facilities available. Through this period a number of improvements and modifications to the G3-UHt system have been made, ahead of the scaling up necessary for commercial deployment.  These have included the enhancement of the gas systems, refurbishment of the feed and steam generation systems, the complete redesign and introduction of programmable safety and control systems designed in line with UK Health, Safety, & Environment (“HSE”) legislation.

This latest commissioning, the positive engagement of senior planning and permitting personnel from the local Council, and the completion of a rigorous third party review to allow insurance cover to be put in place now positions the G3-UHt to begin full-scale, and on-going, operation, testing, and demonstration at the Thornton site. 

Following an extensive pre-commissioning programme, the 24 hour commission testing this weekend used tyre crumb as the input feedstock and produced a robust stream of syngas which was safely flared to the atmosphere.  Subsequent testing will allow for a thorough analysis of the syngas produced, however, in-line, real-time analysis indicated that the quality of the gas produced met the Company’s initial quality objectives and there was full combustion of the syngas at the flare.  The system was taken through cool-down and the team undertook post-operational review .

The demonstration unit at Thornton is critical to the next stage of modelling and process design.  The conceptual design for the commercial modules will continue to be augmented by the operational input from the G3-UHt demonstrator.  It is expected that the next few months should bring a number of industry players to Thornton, as well as potential commercial partners and interested shareholders.  It is intended that the Company will host one or more demonstration visits for investors at the Thornton Science Park in September and full details will be announced in due course.

Pursuant to the announcement of 5 June 2017 the successful re-commissioning and operation of the G3-UHt at Thornton has released the first £100,000 tranche of a potential £500,000 from a UK partner dedicated to the planning and permitting of the Company’s first commercial sites. 

David Ryan, Powerhouse Executive Director of Programme Development said: “The PowerHouse team were superbly supported by our design consultants Engsolve, the service company, Roseberry and IDM.  All have worked extremely hard and to a tight timescale to achieve this milestone.  We were aided and supported at each stage by the staff of the University of Chester and by the support staff at the Thornton Energy Centre.  The sight and sound of gas production at the flare was a great manifestation of all the hard work.

“This extended operation at high temperature was an excellent result and we look forward to the planned commercialisation programme with enthusiasm.”

Commenting, Keith Allaun, Executive Chairman of PowerHouse, said: “This is a hugely important milestone for the Company and one that our long-standing shareholders have been waiting for.  With the successful initiation of our programme at Thornton, we can now begin to aggressively pursue our commercial agenda.  The ability to regularly operate, demonstrate, and test the G3-UHt at Thornton allows us to begin the 25 tonne per day design engineering.  The active engagement of the University of Chester faculty, the Ph.D program we’re co-sponsoring in ultra-high temperature gasification, coupled with our talented engineering team and programme leadership ensures that PowerHouse will lead the market in the deployment of distributed waste-to-hydrogen and waste-to-energy solutions.  Distributed Modular Gasification^© has only begun to make its mark and disrupt the industry.  The opportunities ahead of us appear unlimited.”

For more information, contact:

PowerHouse Energy Group plc Keith Allaun, Executive Chairman	Tel: [phone]
WH Ireland Limited (Nominated Adviser) James Joyce / James Bavister	Tel: [phone]
Turner Pope Investments Ltd (Joint Broker) Ben Turner / James Pope	Tel: [phone]
Smaller Company Capital Limited (Joint Broker) Jeremy Woodgate	Tel: [phone]
IFC Advisory (Financial PR & IR) Tim Metcalfe / Miles Nolan	Tel: [phone]

About PowerHouse Energy

PowerHouse is the holding company of the G3-UHt Ultra High Temperature Gasification Waste-to-Energy system, and the creator of Distributed Modular Gasification^©.

The Company is focused 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. Distributed Modular Gasification© allows for easy, economical, deployment and scaling of an environmentally sound solution to the growing challenges of waste elimination, electricity demand, and distributed hydrogen production. Distributed Modular Gasification and DMG are copyrights of Powerhouse Energy Group plc.

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.  PowerHouse may also be followed on Vox Markets at www.voxmarkets.co.uk/company/PHE.

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