Powerhouse Energy Group PLC (LON: PHE) share price edged 2.4% higher after its partner Hydrogen Utopia signed a contract with Simitli, a Bulgarian city, where it will construct a new Distributed Modular Gasification (DMG) plant.
The plant will convert discarded tires and waste plastic via a gasification process to create hydrogen gas. The company noted that the plant was located in a commercial sector that has existing waste remediation facilities.
Today’s announcement comes after Powerhouse Energy signed an agreement with Hydrogen Utopia to develop gasification technology projects in territories outside the United Kingdom.
The two companies have yet to agree on the licensing fees Hydrogen Utopia will pay for using Powerhouse Energy’s technology.
Today’s move higher happened at a crucial support level that has been in place since mid-November, which could support further gains.
Investors and traders looking to open long positions in Powerhouse Energy may find the current prices quite attractive.
The company’s shares have been falling for the past two weeks after a near parabolic rally earlier this month.
Powerhouse Energy is one of the UK companies operating in the hydrogen power sector. It competes directly with firms such as Eqtec and AFC Energy that are serving the same market.
All these companies have proprietary systems to produce and store hydrogen energy making the industry pretty competitive.
However, given the fast rate at which organisations and individuals have embraced sustainable energy options, I believe there is adequate space for each company to grow.
*This is not investment advice. Always do your due diligence before making investment decisions.
Powerhouse Energy share price.
Powerhouse Energy share price rose 2.39% to trade at 4.71p, rising from Monday’s closing price of 4.60p.
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