The Powerhouse Energy Group PLC (LON: PHE) share price fell 9% after revealing that it had completed two crucial infrastructure steps at its Protos Energy Park. The two milestones brought it much closer to constructing the first hydrogen production facility using end-of-life plastic, which cannot be recycled.
The company will utilise its DMG® technology to construct the facility within plot 10b of its Protos Energy Park. PHE revealed that the two crucial steps completed included the emergency access to the site and the installation of the service ducting into the site.
However, Powerhouse Energy warned that there are still numerous milestones that must be completed before the facility can be operationalised and that the success of the project hinged heavily on it being able to raise the necessary financing for the project.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Get up to £500 cashback for investing with IG.
Investors reacted negatively to the update primarily due to the uncertainty related to Powerhouse Energy and its development partner Peel NRE Ltd’s lack of secured funding for the project. In addition, the present macro-environment has seen many lenders withdraw from the markets amid high borrowing costs and uncertainty facing many firms.
Keith Riley, PHE’s Interim Chairman and Acting CEO, commented: “These two items form an important part of the infrastructure required to enable the Protos Plastics to Hydrogen facility to proceed. Emergency access is required to facilitate the installation of the electrical substation, which will provide power to the site and allow it to be exported from the site when the plant runs in generation mode.”
The newly completed emergency access will allow the electrical network provider to access and maintain their equipment. In addition, the service ducting will make it possible for the electrical contractor to run the cabling and other services into the site from below the ground.
There are no guarantees that Powerhouse Energy shall secure the funding needed to construct and operationalise the project. As a result, investors are worried that the two firms may be unable to secure full funding for the project.
*This is not investment advice.
Powerhouse Energy share price.
The Powerhouse Energy share price fell 9% to trade at 1.354p, from Wednesday’s closing price of 1.488p.