The Powerhouse Energy Group PLC (LON: PHE) has fallen 29.5% in 2022, bringing its 12-month losses to 54.9% amid a broad selloff in the renewable energy sector.
However, investors hope that the company shall see better days under the leadership of Paul Drennan-Durose, the new CEO who took over in January, bringing much-needed change.
Powerhouse Energy began actively engaging with Peel NRE, its partner in constructing the Protos plastic to hydrogen energy plant, its flagship project.
PHE today announced that it had extended the duration of the loan facility given to Protos Plastics to Hydrogen No. 1 Limited, a special purpose vehicle (SPV) established by Peel NRE to construct the Protos plant.
Powerhouse Energy has extended the loan’s availability to 31 August 2022 after the SPV made progress on key project milestones. The loan extension will allow the SPV to complete the negotiations and sign the necessary contracts to kick off construction at Protos.
The company has an ambitious target of operationalising its Protos plant in 2023. The plant uses its DMG technology and could act as the launchpad for future projects.
As investors digested today’s announcement, PHE shares were up 3.77%.
Companies that operate in the waste-to-energy sector have a significant opportunity given the significant awareness that today’s consumers have towards the impact of pollution and greenhouse energy emissions on the planet.
However, such companies have a significant challenge in constructing their power production plants, which require significant resources. They also have to source the raw materials used in their plants.
Luckily for such companies, governments worldwide have set ambitious goals regarding the power sources used in their countries, providing a lifeline to waste-to-energy power producers.
Such companies will also play a significant role in reducing the impact of pollution on the environment by converting waste plastic into hydrogen power.
PHE shares look attractive at current prices to long term investors after falling from their post-pandemic highs of 11.4p to their current price of 3.15p. However, there are no guarantees that we won’t get a more significant decline in future.
*This is not investment advice. Always do your due diligence before making investment decisions.
Powerhouse Energy share price.
Powerhouse Energy’s share price has fallen 27.27% in 2022, and many wonder when the downtrend shall end.
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