TIDMEQT
RNS Number : 6486U
EQTEC PLC
06 December 2021
6 December 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
Deeside RDF Project Development Update
EQTEC plc (AIM: EQT), a world-leading technology innovation
company enabling the Net Zero Future through advanced solutions for
hydrogen, biofuels, SNG and other energy production, is pleased to
announce that EQTEC's wholly owned subsidiary, Deeside WTV Limited
("Deeside WTV") has signed a binding supplemental agreement (the
"Agreement") with Logik Developments Limited ("Logik"). The
Agreement, inter alia, sets out the terms on which the parties have
agreed to vary the terms of the existing share purchase agreement
signed by Logik and Deeside WTV (together, the "Parties"), as
announced on 8 December 2020 (the "Existing SPA") pursuant to which
Deeside WTV agreed to acquire full ownership of the project from
Logik.
Through the new Agreement the Parties will now act in
partnership and seek to develop additional waste-to-value
infrastructure on the Deeside site. The Parties are currently
conducting additional feasibility studies for hydrogen and other
biofuels to enhance the Project, which with the currently approved
planning permission includes a 182,000 tonne waste reception plant
along with 2 MW anaerobic digestion ("AD") facility and a 9.9 MWe
EQTEC Advanced Gasification Technology facility.
Key terms of the Agreement
-- The Company will acquire 32% of the share capital of Logik
WTE Limited (the "Project SPV"), the entity which holds
the land and necessary planning permissions for the Project,
from Logik for a consideration of GBP3.3 million to be
paid no later than 31 March 2022. The Company can select
to make this payment from its existing cash resources
or investment raised directly at Project SPV level;
-- Under the Agreement, GBP500k is now being paid as a fee
to Logik. The Parties have agreed that this payment will
be converted to equity in the Project SPV by 31 March
2022;
-- The Project site currently comprises 6.27 hectares of
land located off Weighbridge Road in the Deeside Industrial
Estate. Under the new Agreement, the Parties have agreed
that c. 2.4 hectares of the land will be retained by Logik
to be used in connection with the proposed hydrogen/biofuel
project intended to be carried out jointly between the
parties ;
-- The new Agreement removes any overage payments, deferred
consideration and fixed dividend sum due to Logik, since
the Parties intend that their relationship going forward
be that of joint venture partners, rather than seller
and buyer; and
-- The Parties are seeking a minimum of GBP10 million of
third-party funding in order to bring the Project to Financial
Close. Following receipt of such funding, EQTEC will invoice
GBP1,500,000 for its project development services to the
Project SPV (such fee to be reduced on a pound for pound
basis if the investment received is less than GBP10 million),
subject to certain conditions to be finalised and agreed
with third-party funders.
The Parties have agreed that the provisions in the Agreement and
the changes to the Existing SPA are immediately binding on them.
They have further agreed to act in good faith and to use all
reasonable endeavours to implement the undertakings and agreements
in this Agreement, including to amend the terms of the Existing SPA
and to finalise other necessary documentation such as a
shareholders' agreement for the Project SPV.
Ongoing discussions with development and infrastructure
investors for the cGBP10 million funding required for the
construction of the Project as well as owner-operators are
progressing with a number of parties engaged at due diligence
stage.
A collaboration agreement, as previously announced on 11 March
2021, with Toyota is now progressing and initial commercial pricing
talks for the biomethane and electricity supplies have
commenced.
Discussions with technology partners have been initiated in
order to prepare a technical and commercial feasibility for the
application of EQTEC's technology to produce a syngas to the
specification required for hydrogen and other gas-to-liquids
applications.
David Palumbo, CEO, EQTEC, commented:
"The Deeside RDF-to-energy project is being developed to deliver
significant decarbonisation benefits to Flintshire and North Wales.
The Advanced Gasification and anaerobic digestion facilities will
transform local municipal solid waste and commercial and industrial
waste into green energy, powering local industry and communities.
This new agreement with Logik has opened the possibility for
further development of innovative infrastructure on the site and
for demonstration of the wide range of applications achievable with
our technology. As demand and government support for sustainable
fuels and hydrogen increases, we will seek to establish more
partnerships with technology partners who require a gasification
solution which is able to provide syngas to specification.
"Our strategic partnerships are a key element of our strategy
for growth. High quality development partners like Logik help us to
accelerate our goal to see our technology in more plants, in more
places sooner to help drive the Net Zero Goals. Working on projects
with the same tested partners, will not only mitigate risks of
execution but also reassure investors and funding partners."
Neil Spencer, Managing Director, Logik Developments
commented:
"We are very pleased to enter into this agreement with EQTEC. We
see it as a strengthening of our collaboration, where we can
develop projects inside a true partnership. Where Logik and MBS
Partnership, our sister company, can focus on what we do best, land
development and construction; and EQTEC can focus on designing
solutions to deploy their world class technology. We already have
our sights on other exciting projects to develop together."
Further information about the Project
EQTEC is lead developer and technology provider for the Deeside
RDF project in partnership with Logik Developments Limited and
Anaergia Inc. through the Project SPV. As announced on 28 October
2021, Flintshire County Council's Planning Committee has resolved
to grant planning permission for the proposed 9.9 MWe plant to
enable a complete and local waste-to-energy solution, combining a
182,000 tonne waste reception plant along with 2 MW anaerobic
digestion ("AD") and EQTEC Advanced Gasification Technology. The
planning authority's decision follows its prior approval of the
site for the original plan of a recycling and AD facility.
Additionally, through the Deeside RDF Project, EQTEC and Toyota are
exploring an innovative, circular and sustainable waste-to-energy
solution for Toyota's engine manufacturing plant in Deeside. The
site is currently on 6.27 hectares of land off Weighbridge Road on
Deeside Industrial Estate, one of Europe's largest such industrial
sites. The project site is wholly owned by the Project SPV
(acquired December 2020) and was formerly a Gaz de France power
station.
The Deeside RDF Project is one of three RDF-to-energy projects
that the Company is developing in the UK, including at Billingham,
Teesside and Southport, Merseyside.
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 / Nauman Babar
-----------------------
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 / Matthew Young 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
.
About Anaergia
Anaergia was created to eliminate a major source of greenhouse
gases ("GHGs") by cost effectively turning organic waste into
renewable natural gas ("RNG"), fertilizer and water, using
proprietary technologies. With a proven track record from
delivering world leading projects on four continents, Anaergia is
uniquely positioned to provide end-to-end solutions for extracting
organics from waste, implementing high efficiency anaerobic
digestion, upgrading biogas, producing fertilizer and cleaning
water. Our customers are in the Municipal Solid Waste, Municipal
Wastewater, Agriculture, and Food Processing industries. In each of
these markets Anaergia has built many successful plants including
some of the largest in the world. Anaergia owns and operates some
of the plants it builds, and it also operates plants that are owned
by its customers.
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