TIDMEQT
RNS Number : 0626A
EQTEC PLC
21 September 2022
21 September 2022
EQTEC plc
("EQTEC", the "Company" or the "Group")
Rationalisation and Focus of Southport Project Ownership
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 the Company has executed with Rotunda Group Limited
("Rotunda") and certain of its subsidiaries a series of legal
agreements to accelerate development of the Southport Hybrid Energy
Park (the "Project"), absolve the Company of the requirement to
purchase Shankley Biogas Limited ("Shankley") for Phase 1 of the
Project and secure the Company's right to develop Phase 2 of the
Project through a newly-created and wholly-owned subsidiary EQTEC
Southport H2 MDC Limited ("Southport H2").
As announced by the Company on 30 June 2022, Phase 1 of the
Project is intended to produce a waste processing facility, an
anaerobic digestion ("AD") facility, combined heat and power
("CHP") engines and a battery storage facility, all developed with
Anaergia, Inc. Phase 1 of the Project is wholly owned by Shankley,
which in turn is owned by Rotunda. The Company previously announced
on 27 September 2021 that its wholly owned subsidiary, Southport
WTV Ltd, had signed with Rotunda a share purchase agreement (the
"SPA") for acquisition of Shankley. The Company has now entered
into agreements for the cancellation of the SPA and to secure the
outstanding GBP2,500,000 of development services fees in the form
of a secured convertible loan note ("CLN") with Shankley. The CLN,
which bears no interest, is due to be paid to the Company,
following sale of or investment into Shankley by any third
party.
As also announced by the Company in June 2022, Phase 2 of the
Project is intended to add EQTEC synthesis gas ("syngas")
technology to the Project, toward conversion of RDF supplied by the
Phase 1 waste processing facility, into hydrogen. Phase 2 of the
Project is now being developed by Southport H2, together with the
Company's technology collaboration partner, Wood. The Company has
reaffirmed with Rotunda its right to develop Phase 2 of the Project
and that Southport H2 has signed with Rotunda an Option to Lease,
valid through August 2025.
Through Southport H2, the Company intends to continue and
accelerate Phase 2 development and project funding and understands
that Rotunda intends to do the same for Phase 1, through Shankley.
All parties will continue collaborating in the best interests of
the Project.
Project progress
Phase 1 of the Project is preparing to commence front-end
engineering design ("FEED") work, which will be led by Anaergia
Inc. ("Anaergia"), the technology partner. Concurrently, Rotunda
and its advisors, supported by the Company, are actively engaged
with investors for funding or acquisition of Shankley.
The Company has completed the preliminary concept design for
Phase 2 of the Project and is working with project consultants to
prepare a planning application. It is anticipated that this
application will be filed in Q4 2022, and a decision would be
expected 12 weeks after the application is made. The Company is
maintaining its relationships with all local stakeholders,
particularly with the local government, which remains supportive of
the Project and its goal to bring the UK's first Waste-to-Hydrogen
plant to Merseyside.
David Palumbo, CEO of EQTEC, commented:
"The Southport Project continues to be an exciting one, and we
are pleased to have found, with our development partners, a way to
focus and drive greater pace toward full funding and financial
close. We renew our commitment to engage owner-operators and
funders toward making the Project a reality through the Build phase
and into Operation. We are also happy to formally focus EQTEC's
role on our core capabilities of technology development and
engineering, with a degree of broader project development as
required to support the Project. Not only does this release us from
capital investment commitments that come with sustained SPV
ownership, but it accelerates progress with our business strategy,
toward becoming exclusively a technology innovator and licensor.
"
Further information about the Project
The Project comprises land at Watts Industrial Estate, Crowland
Street, Southport, Merseyside.
Phase 1 of the Project would produce a waste processing facility
to separate renewables for recycling elsewhere, separate organics
for use by an anaerobic digestion facility and produce
refuse-derived fuel ("RDF"). The Phase 1 Plant would convert 80,000
tonnes of waste per year for six million cubic metres of biomethane
to be injected into the national gas transmission system, also
pulling gas from the grid to generate 9MWe for export to the
national electricity transmission system.
The Company announced on 30 June 2022 that the Phase 1
technology partner, Anaergia had agreed to undertake a full
Engineering, Procurement & Construction ("EPC") role for Phase
1 of the Project, as well as a separate, minimum five-year contract
to operate & maintain ("O&M") the facilities to be built
through Phase 1 of the Project. on 18 July 2022, the Company
announced that the Project had received from the local authority a
formal resolution to grant planning consent for Phase 1.
Phase 2 of the Project would produce a RDF-to-syngas-to-hydrogen
facility that would convert 25,000 tonnes of RDF per year, supplied
by the Phase 1 waste processing facility. The RDF-to-hydrogen
technology solution would combine the Company's syngas technology
with Wood's VESTA syngas-to-hydrogen technology. Implementation of
the solution is subject to further planning permission.
With both Phase 1 and Phase 2 solutions in place, the full Plant
facilities are expected to export to the grid the equivalent of 20%
or more of Southport's energy requirement.
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014, as it
forms part of United Kingdom domestic law by virtue of the European
Union (Withdrawal) Act 2018, as amended, 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
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Strand Hanson - Nomad & Financial Adviser +44 207 409 3494
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James Harris / Richard Johnson
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Panmure Gordon - Joint Broker +44 207 886 2500
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John Prior / Harriette Johnson
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Canaccord Genuity - Joint Broker +44 207 523 8000
----------------------
Henry Fitzgerald-O'Connor / James Asensio
/ Patrick Dolaghan
----------------------
Alma PR - Financial Media & Investor Relations +44 203 405 0205
----------------------
Josh Royston / Sam Modlin / Matthew Young EQTEC@almapr.co.uk
----------------------
+44 207 457 2381 / +44
Instinctif - General Media Enquiries 788 788 4794
----------------------
Chris Speight / Tim Field EQTEC@instinctif.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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END
UPDFFFLIAIIIFIF
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