TIDMEQT
EQTEC PLC
05 October 2020
5 October 2020
EQTEC PLC
("EQTEC", the "Company" or the "Group")
AWARD TO WOOD FOR AN INDEPENDENT TECHNOLOGY AND MARKET
REVIEW
HEADS OF TERMS FOR A POTENTIAL STRATEGIC COLLABORATION
EQTEC plc (AIM: EQT), a world leading gasification technology
solutions company for waste-to-energy projects, is pleased to
announce that, following a comprehensive tendering process, it has
awarded an independent technology and market review to Wood Group
UK Limited ("Wood"). The Company has also signed non-binding heads
of terms with Wood and Deltasource (Middle East Branch) ("DS MENA")
(the "Heads of Terms"), with the intent of entering into a
non-exclusive strategic collaboration to help ensure the effective
deployment of EQTEC technology into the global energy-to-waste
sector. EQTEC has selected DS MENA, an integrated investor and
multi-discipline advisory partner engaged in the capital
development and operation of energy assets, to provide an effective
tripartite approach, jointly with EQTEC and Wood, to source,
develop, structure and de-risk future potential projects using
EQTEC's technology.
Highlights
-- Following a comprehensive tendering process with many of the
leading global engineering players, EQTEC has awarded Wood, a
global engineering and consultancy company, a contract for an
independent technology review and market review.
-- The scope of work for Wood comprises an independent review of
EQTEC's advanced gasification technology with key focus on the
Group's 6 MW power plant in Movialsa, Spain, that has continued to
operate successfully for over nine years with over 125,000
independently audited hours of operation, and its application to a
wide range of mixed waste fuels. In conjunction, Wood will also be
completing a market review, assessing the potential for the
effective market penetration of EQTEC's waste gasification
technology solutions considering waste type, availability, regional
policies and regulations and capital cost comparisons. These two
reviews are expected to be completed during Q4 2020 and the Company
will make a further announcement at the appropriate time.
-- Pursuant to the Heads of Terms, EQTEC, Wood and DS MENA have
agreed to enter into discussions scoping the details of the
potential agreement to collaborate in a structured manner and share
potential benefits as new developer consortiums progress technical
feasibility studies through to full project definition, final
investment decision, and start up.
-- EQTEC has an evolving business model that targets making
effective use of this type of collaborative agreement, which helps
to maintain a low internal cost base and a success-based
collaboration that harnesses local and sector expertise and global
reach and aligns interests to help ensure maximum value is
delivered.
-- EQTEC expects that a collaborative agreement such as the one
envisaged would help ensure that the Group will be in a
strengthened position for entering potential future projects at the
equity level with an enhanced knowledge of the financial and
non-financial risks of each potential project and the return on
equity expectations for EQTEC shareholders and wider
stakeholders.
-- Wood has a long standing waste-to-energy capability and will
develop clarity of potential applications of EQTEC's technology.
Engagement with EQTEC and other technology companies allows Wood's
experts to be better informed when engaging with clients, while
supporting the development of technologies and projects which will
drive the energy transition.
-- The team at DS MENA brings deep knowledge of the full
spectrum of elements that impact the commercial, funding and
execution ability of energy project developments that embrace the
transition to a cleaner, lower carbon and more sustainable energy
economy. DS MENA is also expected to provide an efficient channel
for Middle East project opportunities and local partnerships
through one of its local associated companies, DS MENA LLC.
David Palumbo, CEO of EQTEC, commented:
"I am delighted that EQTEC has appointed industry leader Wood to
complete the independent technology and market review and signed a
heads of terms to explore the potential for future collaboration,
to help to accelerate bringing EQTEC's advanced gasification
technology to waste to energy projects across the globe. Through
partnerships like these, EQTEC would be efficiently leveraging one
of the largest and most respected global engineering players to
improve significantly the knowledge and exposure of EQTEC's
technology to international businesses and accelerate the global
growth of its short and longer term pipeline of opportunities."
Carl Sykes, Energy Transition Director for Deltasource (Middle
East Branch), commented:
"The award of this scope to Wood is the first step in an
intended collaboration process that is expected to move
significantly the dial with respect to the conversion of potential
projects to profitable energy-to-waste assets in an environmentally
friendly way. As specialist investors in and advisors to the
natural resource and energy sectors, we are highly sensitive to the
various factors that underpin an investable project, a robust plan,
a predicable execution and safe, low carbon, sustainable and
profitable asset operation. We will also bring intimate knowledge
of the Middle East landscape and local energy market dynamics."
ENQUIRIES
EQTEC plc +353 21 2409 056
David Palumbo / Gerry Madden
------------------------------
Strand Hanson - Nomad & Financial Adviser +44 20 7409 3494
------------------------------
James Harris / James Dance / Jack Botros
------------------------------
Arden Partners - Broker +44 20 7614 5900
------------------------------
Paul Shackleton (Corporate) / Fraser Marshall
(Sales)
------------------------------
Maitland/AMO - Strategic Communications &
PR/IR adviser +44 20 7379 5151
------------------------------
James Benjamin James.benjamin@maitland.co.uk
------------------------------
IFC Advisory - Financial PR & IR +44 20 3934 6630
------------------------------
Tim Metcalfe / Graham Herring / Zach Cohen
------------------------------
About EQTEC plc
EQTEC is a world leading gasification technology partner with
proven proprietary patented technology for cost effective
waste-to-value applications.
EQTEC designs and supplies advanced gasification solutions that
have a higher efficiency product offering and are modular and
scalable from 1MW to 25MW. EQTEC's solutions are independently
proven to process over 50 different types of feedstock, including
municipal waste, agricultural waste, biomass and plastics. 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.
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 elimination 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
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