(Sharecast News) - Powerhouse Energy announced the successful delivery and installation of its thermal conversion chamber (TCC) at its Bridgend Technical Centre on Wednesday.

The AIM-traded firm said the kiln, supplied by AGICO Group of China, was delivered on schedule and within budget.

It described the TCC as a key component of the feedstock testing unit (FTU), which was now ready for the installation of ancillary equipment.

The installation process would be managed by Powerhouse's engineering consulting division, Engsolve, with commissioning and testing to be conducted by the company's research and development team.

It said the FTU was designed to convert 2.5 tonnes of waste per day into syngas, representing a scaled-down version of the planned commercial process.

Depending on the feedstock, the FTU was expected to produce around 250kW of electrical power or approximately 200 kilograms of hydrogen per day once the necessary separation process is in place.

Initially, the FTU would be used for research and development, as well as for demonstrations to investors and potential customers.

Following the initial uses, Powerhouse said it would evaluate commercial opportunities for the technology.

The company aimed to complete the installation and commissioning of the FTU by the fourth quarter of 2024.

"This is a huge milestone for Powerhouse and draws a line under our past vendor issues," said chief executive officer Paul Emmitt.

"The progress that the Powerhouse team as a whole - PHE and Engsolve - have made in the last six months is exceptional.

"The progress on the technology centre and the FTU means that we can not only return to our goal of progressing our research and development activities, but this will provide us with a showcase for our patented technology allowing us to drive forward the rollout of our process."

At 1004 BST, shares in Powerhouse Energy Group were up 6% at 1.59p.

Reporting by Josh White for Sharecast.com.