PowerHouse Energy - Re-initiation of coverage

Pioneering waste-to-hydrogen tech provider now on the cusp of commercialisation & creating significant shareholder value

PowerHouse Energy (PHE) is an AIM listed company which is pioneering waste-to-hydrogen technology via its proprietary Distributed Modular Gasification (DMG®) process.

  • Revolutionary waste-to-hydrogen technology

    PowerHouse’s proprietary Distributed Modular Gasification (DMG®) process can convert high calorific value waste material such as tyres and plastic into a clean Ecosynthesis© gas. This “syngas” contains a high percentage of hydrogen that can be cleaned up to 99.999% purity using off-the-shelf technology to produce a road quality hydrogen fuel. DMG allows for distributed electrical generation, distributed waste elimination, and distributed hydrogen production allowing each to be used at the point of engagement.

  • Significant technical and commercial progress made

    PowerHouse has been operating a process demonstration unit at the Thornton Science Park, Chester, since May 2017. A string of positive announcements have been made since then, culminating last month in the successful independent assessment of the feasibility of its Commercial Design by industry-leading technology assurance group, DNV-GL. . Powerhouse has also made significant commercial progress over the course of 2017 and 2018, including a Heads of Terms agreement with Peel Environmental to locate an initial commercial DMG® System. The Company is in late stage discussions with 6 additional potential customers at which an early DMG® System may be deployed, as well as commercial discussions with multi-national transportation providers in Japan.

  • Market drivers put the company in a sweet spot

    PowerHouse’s technology has the potential to solve increasing issues associated with global waste management, to take advantage of higher demand for clean “green” power generation and to supply a growing worldwide demand for road quality hydrogen fuel.

  • DCF valuation suggests significant upside potential

    Our DCF analysis suggests an NPV(20) of £47.4 million, or 2.45p per share, some 6 times the current share price. However, we use very conservative assumptions in our model and see significant further potential upside. We re-initiate coverage of PowerHouse Energy with a Conviction Buy stance.


    PowerHouse Energy is a research client of Align Research. Align Research owns shares in PowerHouse Energy. For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.

Table: financial overview
Year to Dec 2014A 2015A 2016A 2017A
Revenue (£m) - - - -
Pre-tax (£m) (2.55) (0.78) (1.33) (1.87)
EPS (p) (0.65) (0.2) (0.19) (0.24)
Source: Company accounts