Shares in PowerHouse Energy Group PLC (LON:PHE) surged Monday morning as the green energy provider reported a successful test of its gasification reactor.

The company said it recorded a maximum peak flow rate of over 50 cubic metres per hour of synthesis gas (syngas), having successfully completed the rebuilding and enhancement of the company’s G3-UHt gasification reactor at the Thornton Science Park in Chester.

The news is not only good from a technical perspective, but also from a financial one, as it has triggered the release of £100,000 from a UK partner dedicated to the planning and permitting of the company’s first commercial sites; the partner’s commitment could potentially rise to £500,000.

Powerhouse said this represented the second successful phase in the operation of the G3-UHt unit in the UK and the first at the Thornton Science Park.

Since the re-siting of the unit at Thornton in early May, the technical team has enhanced the gas systems, refurbished the feed and steam generation systems, and completely redesigned programmable safety and control systems designed in line with UK Health, Safety, & Environment legislation.

Powerhouse said the G3-UHt is now in a position to begin full-scale, and on-going, operation, testing, and demonstration at the Thornton site.

Following the successful 24-hour commission testing over the weekend using tyre crumb at the input feedstock, future testing will allow for a thorough analysis of the syngas produced; however, in-line, real-time analysis indicated that the quality of the gas produced met the company’s initial quality objectives and there was full combustion of the syngas at the flare.

The demonstration unit at Thornton is critical to the next stage of modelling and process design, Powerhouse said.

The next few months should bring a number of industry players to Thornton, as well as potential commercial partners and interested shareholders. The company intends to host one or more demonstration visits for investors at the Thornton Science Park in September and full details will be announced in due course.

Keith Allaun, executive chairman of Powerhouse, said the team could now really put its foot down in terms of progressing the technology to commercialisation.

“The ability to regularly operate, demonstrate, and test the G3-UHt at Thornton allows us to begin the 25 tonne per day design engineering. The active engagement of the University of Chester faculty, the Ph.D program we’re co-sponsoring in ultra-high temperature gasification, coupled with our talented engineering team and programme leadership ensures that PowerHouse will lead the market in the deployment of distributed waste-to-hydrogen and waste-to-energy solutions,” Allaun said.

“Distributed Modular Gasification has only begun to make its mark and disrupt the industry.  The opportunities ahead of us appear unlimited,” he added.

Shares in Powerhouse rose to 1.17p in early deals, having closed on Friday at 0.8p.

Source: http://www.proactiveinvestors.co.uk/companies/news/181696/powerhouse-energy-shares-burn-rubber-after-successful-test-181696.html