Powerhouse Energy Group PLC (LON: PHE) share price edged lower after announcing an extension of its collaboration with Peel NRE to construct the Protos project, its first hydrogen facility in the UK.
The company revealed that it had extended its collaboration period with Peel NRE to 31 August 2022 based on the significant progress achieved by Peel in advancing the Protos hydrogen project, which is expected to start full-fledged operations in 2023.
Peel NRE formed a special purpose vehicle (SPV) known as Protos Plastics to Hydrogen No. 1 Limited, which has made progress in getting the right contractors to kick start the construction process.
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Some important works have already started, including constructing an access road and other crucial supporting works for the plant.
Peel NRE has also submitted a planning application for an additional plastics plant at Protos that will help the company recover more materials and sort plastics for recycling.
Powerhouse Energy also revealed that it had extended the availability period for the £3.8mln loan facility provided to the SPV to procure items such as the thermal conversion chamber, the syngas process module, the compression and power generation modules.
Peel NRE has also submitted a planning application for a second facility at Rothesay Dock on the north bank of the River Clyde, West Dunbartonshire.
Investors barely reacted to the news, as evidenced by the slight decline in PHE’s share price, given that the Protos project is still far from being completed. It appears Powerhouse will have to release more impactful updates to push its share price higher.
From a technical perspective, Powerhouse Energy shares are trading in the middle of an almost 1p wide range, which does not provide an excellent trade setup. Therefore, I would not buy or short these shares at current prices.
However, I would be interested in the shares if they fall to the 3.5p support zone.
*This is not investment advice. Always do your due diligence before making investment decisions.
Powerhouse Energy share price.
Powerhouse Energy share price barely moved today after the extension of the Protos project partnership.
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