TIDMEQT
RNS Number : 1447Z
EQTEC PLC
15 May 2019
15 May 2019
EQTEC plc
("EQTEC" or the "Company")
Business Strategy Update
EQTEC plc (AIM: EQT), the technology solution company for waste
gasification to energy projects, is pleased to provide an update on
its business strategy.
EQTEC remains focused on becoming a progressive technology
partner creating a unique ecosystem, where waste operators,
developers, technologists, engineering, procurement and
construction ("EPC") contractors and capital providers collaborate
to build sustainable waste elimination and clean energy
infrastructure projects.
Through viewing the market as a collaborative ecosystem and
leveraging its in-house gasification technology capabilities,
sector know-how and strategic relationships, EQTEC is seeking to
mitigate technology and project execution risk to become the
one-stop-shop for gasification technology, engineering design, EPC,
O&M and project funding to developers and owners of waste to
energy ventures.
EQTEC has already entered into a number of key strategic
partnerships with leading partners as it seeks to address its
target markets, with further strategic collaborations being
considered. The Board of the Company ("Board") believes that this
collaborative approach is already bringing new opportunities to the
Company and will enable the Company to deliver projects on an
expedited basis. This approach has also enabled the Company to have
greater visibility and control over the project pipeline.
EQTEC's engagement with strategic partners and customers, both
existing and new, has driven the Company to concentrate on
successful applications in specific target markets where the Board
believes that as a result of EQTEC's experience and successful
commercial implementation, it has a competitive advantage. While
the focus is on opportunities within the UK, US and European
market, EQTEC engages with customers globally through strategic
alliances.
Ian Price, CEO of EQTEC, commented: "We feel very positive about
the current position of EQTEC and its ability to execute its
strategy. The Board believes that working with a select group of
strategic partners, with track record and success in their markets,
will enable us to create and coordinate the ecosystem required to
develop successful projects with proven counterparties. We continue
to expand our pipeline and through this approach, to have a much
greater influence on all aspects of such projects from design to
operations.
Our team have worked extremely hard to get us where we are and I
am excited to share with our shareholders the transformational
period ahead. I look forward to keeping shareholders updated in
this regard."
The Company is now focused on the following three verticals in
order to capitalise on its competitive advantage:
Elimination of Waste Streams - RDF
Municipal Solid Waste (MSW) and Refuse Derived Fuel (RDF)
EQTEC's target project size: 10-30 MW
It is estimated that approximately 3.5 million tonnes of RDF are
exported annually by the UK due to lack of elimination and
processing capacity, presenting a significant opportunity to EQTEC
and its partners. To address this market, EQTEC has entered into
collaboration with two of the largest Energy infrastructure
construction groups in the world, China Energy Engineering
Corporation Limited International Company ("Energy China") and
COBRA Instalaciones Y Servicios ("COBRA"), having passed their
technical due diligence in 2017 and 2018 respectively, allowing
EQTEC to provide the full technology and EPC offering.
The Board believes that the Company's collaborative strategy to
address this sector was validated by Scott Bros. Enterprises
Limited ("Scott Bros") entering into the memorandum of
understanding with EQTEC and COBRA for the joint development of the
proposed 25 MW Billingham Energy waste gasification and power plant
as announced on 8 May 2019. The project, once operational, is
anticipated to process 200,000 metric tonnes per annum of RDF from
municipal waste with a project value in the range of GBP150 million
to GBP180 million.
EQTEC is working with COBRA to deliver further EPC offers on
other similar projects within the UK.
Elimination of Waste Streams - Industry Specific
Industry Specific Energy Recovery
EQTEC's target project size: 2-10 MW
Approximately 4 million tonnes of olive pomace waste are
produced annually in Spain alone and this is becoming a significant
issue for the industry throughout the Mediterranean.
EQTEC's initial focus in this vertical is on the elimination of
olive pomace waste in the Mediterranean area, having successfully
deployed its technology in eliminating such waste on a commercial
scale since 2011, with 90,000+ hours of operational data at the
Movialsa plant in Spain.
EQTEC are in discussions with a major Spanish business group,
active in the sector, to partner and collaborate on developing
projects for this application. The Board believes that through this
partnership approach, EQTEC will be able to rapidly expand its
presence in the market, providing technology sales revenues and
recurring annual revenues from O&M contracts and potential
technology licensing fees.
Another industry that the Company will be focusing on is waste
produced during the pulping process in the Paper Mill Industry
throughout Europe.
Recovery of Clean Energy from Biomass
Biomass Energy
EQTEC's target project size: 2.5-5 MW
The U.S. Energy Information Administration currently predicts
that wood biomass will be used to generate 117,000 MWh per day
worldwide in 2019, estimated to be sufficient to power 100 million
homes, and is expected to continue to grow year-on-year.
The United States, and in particular California, which needs
immediate solutions for waste wood, offers significant
opportunities for the recovery of energy from biomass feedstocks.
The most recent drought in California caused a die off in excess of
100 million trees. Dead trees pose a serious threat of wildfire,
pushing government and private agents to take action for urgent
remediation. The State of California has declared a state of
emergency to immediately address the risk. However, fewer than half
a dozen small scale biomass plants exist in California. To address
the current issue, the Bioenergy Association of California,
estimates that more than 100 would be needed just in the Sierra
Nevada.
As announced on 24 September 2018, EQTEC's proprietary
gasification technology has been chosen by Phoenix Energy for two
power plants in California, with the design work for the first
power plant having already been completed. Given the significant
opportunity that exists within California, EQTEC and Phoenix Energy
are in discussions to form a deeper collaboration to develop
Phoenix's project pipeline.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Enquiries
EQTEC plc +353 (0)21 2409 056
Ian Price - Chief Executive Officer
Gerry Madden - Finance Director
Strand Hanson - Nomad, Financial
Adviser & Broker +44 (0) 207 409 3494
James Harris/Richard Tulloch/Jack
Botros
IFC Advisory - Financial PR & IR +44 (0) 203 934 6630
Tim Metcalfe / Miles Nolan / Zach
Cohen
Notes to Editors
About EQTEC plc
EQTEC's business model involves sourcing and providing
assistance in developing waste elimination projects to which it
will ultimately sell its EQTEC Gasifier Technology ("EGT") and
O&M services. EGT enables project developers to construct waste
elimination plants and recover electrical and thermal energy from
the waste streams.
EQTEC sources projects that have a local supply of waste in need
of elimination and conversion. It builds relationships and brings
together the developers, the waste owners, the building contractors
and funders. It then supplies the energy recovery technology and
provides engineering services to the projects. Furthermore, EQTEC
will provide O&M services to the operating projects generating
recurring revenues over the life of the projects.
The Company is quoted on AIM and trades as EQT. Further
information on the Company can be found at www.eqtecplc.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDLLFVFEFIELIA
(END) Dow Jones Newswires
May 15, 2019 08:35 ET (12:35 GMT)
Eqtec (LSE:EQT)
Historical Stock Chart
From Apr 2024 to May 2024
Eqtec (LSE:EQT)
Historical Stock Chart
From May 2023 to May 2024