The company will use the money raised to buy long-lead items before the formal financial close of the first commercial-scale DMG installation
The waste-to-energy specialist said the funds will enable the company to significantly speed up the first commercial-scale distributed modular generation (DMG) installation using the company’s technology, which Powerhouse is looking to achieve by the end of March.
Completion of the first reference site will be commercially and strategically important to the company, not least as a springboard for overseas sales and marketing, Powerhouse added.
The White Family, which holds around 26.05% of the company’s equity, invested around £2.6mln through the share placing.
“This is a very exciting step forward and a great start to 2021. It demonstrates how our company is getting down to business. In addition, the warrant granted to Peel Holdings (IoM) Limited on 9 September 2020 (‘Peel Warrant’) is exercisable for a period of six months from the date when financial close is reached on Protos,” said Tim Yeo, the executive chairman of Powerhouse in a statement.
“The exercise of the Peel Warrant would bring a further £10.2 million of cash into Powerhouse. Together with the proceeds of this fundraising, the exercise of the Peel Warrant would place our company on a very secure financial footing and facilitate the deployment of our technology internationally, helping to accelerate a clean energy transition and provide a solution to non-recyclable plastic,” he added.
David Ryan, the chief executive officer of Powerhouse, said his overriding priority is to get Powerhouse’s first project into operation as soon as possible.
“The completed plant would enable future customers worldwide to see the DMG technology delivering the reality of waste plastic regenerated to hydrogen, realising the predicted technology environmental and commercial benefits. This investment will allow Powerhouse and Peel to deliver this reality sooner and I consider it as an obvious step for the company to make in these challenging times,” Ryan concluded.
Read More: Powerhouse Energy Group PLC raises funds as it races to bring its first DMG plant online