Key points:
- The Powerhouse Energy share price surged 23.1% on new project approval.
- The company’s partner Peel NRE won approval for a new facility in Scotland.
- The project is expected to cost £20 million. Should you buy PHE shares?
The Powerhouse Energy Group PLC (LON: PHE) stock price surged 23.1% after announcing that Peel NRE, its UK channel partner, had won planning approval for waste plastic to hydrogen plant in Scotland.
Also read: The Five Best Green Energy Stocks In 2022.
Investors cheered the news that will lead to the construction of a 13,500-tonne facility in West Dunbartonshire, Scotland. The facility will be located at Rothesay Dock on the north bank of the River Clyde. It will be the second facility in the UK to use Powerhouse Energy’s technology for converting waste plastics into hydrogen.
The approval comes after the British government doubled its hydrogen production target by 2030 so that the UK can produce clean and sustainable energy for use even as global energy prices keep rising.
The facility’s construction is expected to cost £20 million and be completed within 15 months. Peel NRE and Powerhouse Energy have an agreement to construct 11 waste plastic to hydrogen facilities in the UK, with the option of extending the exclusive partnership for up to 70 facilities over the long term.
Richard Barker, Peel NRE’s Development Director, said: “This is a fantastic moment for West Dunbartonshire and Scotland. It shows how the UK is innovating when it comes to rolling out new net-zero technologies. The facility will address the dual challenge of both tackling our problem plastic whilst creating hydrogen, a sustainable fuel for future generations.”
Paul Drennan-Durose, Powerhouse Energy’s CEO, said: “The consent for a second site is another substantive step for Powerhouse as we roll out the process of commercialising our technology. We value the opportunity of working alongside Peel NRE and in supporting the Scottish and UK governments in their missions to decarbonise communities and the economy.”
Investors interested in acquiring Powerhouse Energy shares may find the current prices attractive. PHE shares have fallen by 48.52% in 2022, making them an ideal target for savvy investors. However, there are no guarantees that the shares won’t fall further.
*This is not investment advice. Always do your due diligence before making investment decisions.
Powerhouse Energy share price.
The Powerhouse Energy share price surged 23.07% to trade at 2.40p, rising from Wednesday’s closing price of 1.95p.