TIDMEQT
RNS Number : 7542Y
EQTEC PLC
17 May 2021
17 May 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
Acquisition and recommissioning of Italy waste-to-energy plant
powered by EQTEC technology
EQTEC plc (AIM: EQT), a world leading gasification technology
solutions company for sustainable waste-to-energy projects , is
pleased to announce the acquisition and planned recommissioning of
a 1MWe waste-to-energy plant in Italy. Originally commissioned in
2015, the plant is built around EQTEC's proprietary and patented
Advanced Gasification Technology.
The Company has acquired, and will lead a consortium to repower,
own and operate, the biomass-to- energy plant (the "Plant") in
Castiglione d'Orcia, Tuscany, Italy. Once operational, it is
intended that the plant will transform straw and forestry wood
waste from local farms and forests into green electricity and heat
for use in the local community.
The Plant is the first of two such facilities with EQTEC's
technology that have been decommissioned by previous
owner-operators in recent years and that the Company has targeted
for repowering to full operation. The Company intends for the Plant
to become the first of its 'Market Development Centres ("MDCs"),
which will showcase its technology in a fully operational,
commercial setting. The Company will make further announcements
about the planned acquisition of a facility in Croatia in due
course.
Highlights:
-- EQTEC will lead a consortium joined by three other partners:
an Irish Family Office, an Italian Family Office and MetalNRG plc
("Metal NRG"), (together the "Parties"), which will participate in
a Special Purpose Vehicle ("SPV"), designated EQTEC Italia MDC Srl,
investing an aggregate EUR 2.1m for an initial 80% equity
interest;
-- The Parties have signed a Heads of Terms Investment
Agreement, (the "Agreement") for the funding of the SPV, with
financial close due imminently, subject to execution of the final
form agreement by the Parties;
-- The Company will hold the remaining 20% equity in the SPV.
The Company estimates that the Plant will generate an unlevered IRR
of 20% and annual EBITDA in excess of EUR750,000;
-- The acquisition of the Plant has been completed by EQTEC;
-- The Plant is due to be fully recommissioned and operational
by Q2 2022. Connection to Italy's national grid is already in place
and the Project will benefit from the country's favourable tariffs
for electricity produced from waste biomass until the end of
2027;
-- The Plant is expected to produce approximately 1MW green
electricity from one tonne of straw pellets and wood chips annually
and will be upgraded to process a greater diversity of biomass
feedstocks over time. The contract value of EQTEC's technology
sales for the Plant is expected to be EUR1,750,000 in technology
and engineering upgrades;
-- In addition to being co-owner, operator and Advanced
Gasification Technology supplier to the Plant, EQTEC is to be
contracted as the O&M contractor for the Plant following its
recommissioning. The O&M contract value for the Company is
expected to be approximately EUR215,000 per annum; and
-- The EPC contractor for the Project will be COS.M.I. Srl
("COSMI"), EQTEC's Italian delivery partner and a company with
successful experience in building EQTEC plants.
David Palumbo, CEO of EQTEC, commented:
"I am very pleased that EQTEC will lead the effort with our
partners to re-commission and revive this biomass-to-energy plant
in Italy, providing power and heat to the area and demonstrating
sustainable, commercial success with EQTEC advanced gasification.
Additionally, I am delighted to see us secure this with a
well-balanced consortium of experienced partners and this is an
approach we hope can be achieved for other projects in our
pipeline.
"Finally, I am pleased about the local nature of this plant and
our future role there as co-owner/operators. EQTEC is committed to
ensuring our projects have a positive local impact, from sourcing,
treating and converting local waste through to the generation of
clean energy in the local area, all powered by EQTEC technology. We
will continue to support local businesses, employing local people
and sustainably delivering value for local communities in all the
markets we operate ."
Further information about the consortium
As announced in March 2021, the Company can now provide an
update on its Framework Partnership Agreement (FPA) with MetalNRG,
which is in place to develop biomass-to-energy, RDF-to-energy and
sustainable, clean energy projects in the UK and Europe. T o
support and finalise its involvement in the consortium and
subsequent SPV for the Project in Italy, as set out in the
Company's Trading Update on 22 March 2021, the intended share swap
between EQTEC and MetalNRG is now being completed. MetalNRG will
receive 27,932,961 new ordinary shares in the Company ("Ordinary
Shares") based on the market closing price of 1.79p per Ordinary
Share on Friday 7 May 2021, while EQTEC will receive 60,606,061
MNRG shares at 0.0083p which was the market closing price on the
same day.
Admission and total voting rights
The Company will make an application to the London Stock
Exchange plc for the 27,932,961 new Ordinary Shares, issued and
allotted set out above, to be admitted to trading on the London
Stock Exchange's Main Market for listed securities ("Admission").
It is expected that Admission will become effective and dealings
will commence on or around 21 May 2021. The 27,932,961 New Ordinary
Shares will rank pari passu with the existing Ordinary Shares.
Following Admission, there will be 7,235,845,151 Ordinary Shares
in issue. This number may be used by shareholders as the
denominator for the calculation by which they will determine if
they are required to notify their interest in, or a change in their
interest in, the share capital of the Company.
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
ENQUIRIES
EQTEC plc +353 21 2409 056
David Palumbo / Gerry Madden
-----------------------
Strand Hanson - Nomad & Financial Adviser +44 20 7409 3494
-----------------------
James Harris / James Dance
-----------------------
Arden Partners - Joint Broker +44 20 7614 5900
-----------------------
Paul Shackleton (Corporate) / Simon Johnson
(Sales)
-----------------------
Canaccord Genuity - Joint Broker +44 20 7523 8000
-----------------------
Henry Fitzgerald-O'Connor / James Asensio
/ Patrick Dolaghan
-----------------------
Alma PR - Financial Media & Investor Relations +44 20 3405 0205
-----------------------
Josh Royston / Sam Modlin EQTEC@almapr.co.uk
-----------------------
+44 7554 014 188 / +44
BECG - General Media Enquiries 7867 452 269
-----------------------
Carrie Lowe / Tom Gosschalk EQTEC@BECG.com
-----------------------
About EQTEC plc
As the world's leading experts in gasification for sustainable
waste-to-energy projects, EQTEC is building the future of the
sector, combining its technology innovation and engineering with
expert plant construction and project deliveries, to help drive the
global energy transition. EQTEC's proven, proprietary and patented
technology is at the centre of projects that aim to enhance local
communities and champion local businesses with an improved
environmental impact.
EQTEC designs and supplies advanced gasification solutions that
have a higher efficiency product offering and are modular and
scalable from 1MW to 30MW. EQTEC's versatile solutions are
independently proven to process over 50 different types of
feedstock, including municipal waste, agricultural waste, biomass
and plastics with no hazardous waste or toxic emissions . EQTEC's
solutions produce a uniquely pure high-quality synthesis gas
(syngas), that is capable of being used for the widest applications
in the creation of energy, hydrogen and biofuels.
EQTEC's proprietary technology design together with deployment
and maintenance capabilities mitigate the risks when using third
party equipment. EQTEC's Technology Integration capabilities enable
the Group to lead collaborative ecosystems that build sustainable
waste reduction and green energy infrastructure.
The Company is quoted on AIM (ticker: EQT) and the London Stock
Exchange awarded EQTEC the Green Economy Mark that recognises
listed companies with 50% or more of revenues from
environmental/green solutions.
Further information on the Company can be found at www.eqtec.com
.
Existing EQTEC plants and sustainable waste-to-energy market
opportunities
To date, four commercial plants have been built and are using
EQTEC's advanced gasification technology. The oldest such plant,
built in 2011, has operated for over 125,000 independently audited
engine hours, receiving highly commendable feedback from leading
gas engine company Jenbacher relating to purity of the syngas,
reliability and efficiency.
EQTEC's technology and solutions have, in the Board's view, the
potential to become a new UK and global standard for many
traditional waste-to-energy facilities to collaborate with,
reducing reliance on increasingly less attractive waste elimination
methods and delivering new resilient and locally based clean energy
infrastructure across the UK and internationally.
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END
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