TIDMEQT
RNS Number : 0800P
EQTEC PLC
14 October 2021
14 October 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
Additional Investment in North Fork Community Power Project
EQTEC plc (AIM: EQT), a world-leading gasification solutions
company building the future of a cleaner waste-to-energy industry,
has reinforced its commitment to California, to forest fire
prevention and to clean energy production, by investing an
additional c. US$2.8 million (c. GBP2.1 million) in the North Fork
project in California, USA (the "Project"). The additional
investment will increase the Company's equity in the project to
49%. Further to its announcement of 12 July 2021, the Company has
also provided a US$4.5 million convertible loan facility to fund
the development of the Project.
The Project will result in a 2 MWe biomass-to-energy plant based
on EQTEC Advanced Gasification Technology that will transform
locally sourced forestry waste into power and biochar for the local
community. As previously announced, the Project has encountered
successive delays since late 2021 as consequences of the Covid-19
pandemic and fires near the construction site. Shipping delays,
legally enforced work stoppages during fire warnings and continual
re-scheduling of work all undermined progress with construction and
complicated retention of sub-contractors. Despite this, EQTEC
technology has been delivered on site and construction work has
progressed to where foundations are in place and steel structures
have been erected, with much of the core gasification equipment
installed.
The three Managing Members of the project SPV, North Fork
Community Power LLC ("NFCP"), which are the Company, development
partner Phoenix Biomass Energy, Inc. ("Phoenix") and local
community representative North Fork Community Development Council
("NFCDC"), have been working since March 2021 with the Project
bondholders Lapis Advisers LP, ("Lapis") and an Investor Member to
negotiate terms for additional funding to support the Project
through to live operation. The Company's investment of c. US$2.8
million (c. GBP2.1 million) has increased its equity shareholding
in NFCP from 10% to 49%.
This month, the Company also reached agreement with NFCP and
Lapis to provide NFCP with a two-year convertible loan facility of
up to US$4.5 million (GBP3.3 million) (the "Convertible Loan
Facility"). The Convertible Loan Facility will accrue interest at a
rate of 10% per annum, payable annually, and the balance
outstanding (including any accrued interest) will be convertible at
the Company's option at the earliest of: the maturity date, any
default or any takeover. If the Convertible Loan Facility were
fully drawn down and converted into equity, it would result in the
Company's taking a controlling interest in the Project.
The Convertible Loan Facility has been signed by all Managing
Members and assumes no participation by the Investor Member. Any
future participation by the Investor Member could result in
reductions in Convertible Loan Facility amounts drawn down by NFCP
and/or changes to shareholdings in NFCP.
David Palumbo, CEO of EQTEC, commented:
"The North Fork project is such an important one for the local
community, for California and for EQTEC. The plant at North Fork
will receive forestry waste that could otherwise fuel fires,
instead using it as fuel for electricity to the local community and
biochar for other local applications, all produced in an efficient
and environmentally friendly way. Production of biochar and the
benefits of forest and watershed protection, carbon sequestration
and soil enrichment will be a first for us, yet one for which we
are seeing growing demand. EQTEC is committed to completing this
plant and to building more such plants throughout California, with
North Fork as a reference. We are encouraged by the State's
commitment to clean energy and to technologies such as ours that
support wildfire prevention through safe and sustainable
elimination of forestry waste. Our priority now is collaborating
with our partners and the project delivery team to complete
construction and commissioning of the plant at North Fork and then
ensure its successful start into live operation."
More information about the Project and NFCDC
The 2MWe forestry biomass waste-to-energy facility is located at
North Fork, in California, USA. EQTEC is the provider of the
Advanced Gasification Technology provider to the Project and is
also an equity owner in NFCP with a vested interest in the success
of the Project. NFCDC is a volunteer-led, not-for-profit, local,
community initiative formed to promote in particular the
redevelopment of a former old mill site on which the Project is
located. The members of NFCDC are primarily residents in the North
Fork area of California. NFCDC, through its subsidiary NFCDC
Holding, is a Managing Member of NFCP, as is the Company.
Based on its continued interest and investment in the Project,
the Company has also taken a lead in bringing all investors and
stakeholders into negotiations aimed at ensuring the Project is
fully funded and can proceed with latter stages of construction and
into commissioning and live operations.
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 +44 203 883 7009
David Palumbo / N auman Babar
-----------------------
Strand Hanson - Nomad & Financial Adviser +44 20 7409 3494
-----------------------
James Harris / James Dance
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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 one of the world's most experienced gasification technology
and engineering companies, with a growing track record of
delivering operational and commercial success for transforming
waste-to-energy through best-in-class technology innovation,
engineering and project development , EQTEC brings together design
innovation, project delivery discipline and solid commercial
experience to add momentum to the global energy transition. EQTEC's
proven, proprietary and patented technology is at the centre of
clean energy projects, sourcing local waste, championing local
businesses, creating local jobs and supporting the transition to
localised, decentralised and resilient energy systems.
EQTEC designs, supplies and builds advanced gasification
facilities in the UK, EU and US, with highly efficient equipment
that is modular and scalable from 1MW to 30MW. EQTEC's versatile
solutions process over 50 varieties of feedstock, including
forestry wood waste, vegetation and other agricultural waste from
farmers, industrial waste and sludge from factories and municipal
waste, all with no hazardous or toxic emissions . EQTEC's solutions
produce a pure, high-quality synthesis gas ("syngas") that can be
used for the widest range of applications, including the generation
of electricity and heat, production of synthetic natural gas
(through methanation) or biofuels (through Fischer-Tropsch,
gas-to-liquid processing) and reforming of hydrogen.
EQTEC's technology integration capabilities enable the Group to
lead collaborative ecosystems of qualified partners and to build
sustainable waste reduction and green energy infrastructure around
the world.
The Company is quoted on AIM (ticker: EQT) and the London Stock
Exchange has awarded EQTEC the Green Economy Mark, which 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
.
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