TIDMEQT
RNS Number : 3710B
EQTEC PLC
30 September 2022
30 September 2022
EQTEC plc
("EQTEC", the "Company" or the "Group")
Variation to Billingham Land Purchase Agreement
EQTEC plc (AIM: EQT), a global technology innovator powering
distributed, decarbonised, new energy infrastructure through its
waste-to-value solutions for hydrogen, biofuels, and energy
generation, announces that, further to its announcements on 26
February 2021 and 15 February 2022, Haverton WTV Limited ("Haverton
WTV") a wholly owned subsidiary of the Company, and Scott Bros.
Enterprises Limited ("Scott Bros") (the "Parties") have reached an
agreement (the "Variation") to amend the existing, conditional Land
Purchase Agreement (the "LPA") relating to the purchase by Haverton
WTV from Scott Bros of the land on which a proposed, up to 25 MWe
waste gasification and power plant (the "Project") at Haverton
Hill, Billingham, UK, is to be constructed (the "Project
Site").
In addition to the amended terms set out below and pursuant to
the Variation, the Parties will seek agreement on segregation of
the land ownership from the Project SPV to broaden funding and sale
options of the Project. Accordingly, the Parties intend to agree
the grant of an option to lease for the letting of the property by
Scott Bros to Haverton WTV in respect of the development and
operation by Haverton WTV.
Key terms of the Variation are as follows:
-- The consideration for purchase of the Project Site remains GBP8,600,000;
-- A deposit amount of GBP260,000 was paid by Haverton WTV to Scott Bros on 26 February 2021;
-- A further payment of GBP250,000 was paid by Haverton WTV to Scott Bros on 24 February 2022;
-- The payment schedule has been amended, such that all
remaining amounts payable to Scott Bros will now be included the
final payment of GBP8,090,000 payable at completion of the land
purchase, which must occur on or before 23 December 2022 (the
"Longstop Date"); and
-- The Parties agree they will use all reasonable endeavours to
agree and exchange an option to lease as soon as practicable and in
any event within eight weeks from the date of the Variation, which,
once agreed, will replace the obligation by Haverton WTV to
purchase the land.
All other conditions of the LPA remain the same regarding
satisfaction or waiver by Haverton WTV of specified conditions
prior to the Longstop Date. These conditions refer to development
and financing of the Project, including: Haverton WTV's having
reached financial close in respect of such financing; Haverton
WTV's having agreed the form of key construction, operational,
offtake and feedstock contracts; and the Project's having been
fully permitted by the relevant planning and environmental
authorities.
The Variation follows announcements by the Company on 21
September 2022 about its Southport project and on 26 September 2022
about its Deeside project, whereby the Company indicated its intent
to reduce its capital investment commitments and accelerate
progress with its business strategy toward becoming exclusively a
technology innovator and licensor.
David Palumbo, CEO of EQTEC, commented:
"The Billingham Project is the largest of our three UK projects
and might hold the greatest potential for a multi-technology, new
energy infrastructure site. Billingham is in the middle of the Net
Zero Teesside zone and surrounded by a wide range of industries
seeking clean, baseload energy and biofuels. We have invested time
and effort evaluating a range of scenarios toward identifying the
optimal use of the Project Site. We are pleased with the support we
have received from Scott Bros, who have long-standing investments
in Teesside and a clear dedication to its continued growth. Our
intention to separate the land ownership from the Project will
further lend to the optionality for investors, supporting pace
toward funding and financial close. As previously announced, we are
working with top-tier partners so that EQTEC can focus on
technology development and engineering, providing project
development services as required. Not only does this seek to
release us from capital investment commitments, but once concluded
accelerates progress with our business strategy, toward becoming
exclusively a technology innovator and licensor."
About the Project
The Project Site is in a heavily industrialised area, adjacent
to major plant facilities and estates, including those of CF
Fertilisers UK Limited, Seqens Group pharmaceuticals and many
others. Through its wholly owned project SPV, Haverton WTV, the
Company has secured all relevant permits and permissions to build a
refuse-derived fuel ("RDF")-to-combined heat and power ("CHP")
facility that would transform 200,000 tonnes per year of RDF into
up to 25MW of electricity for export to the national grid, with the
potential for creating up to 34MW of thermal energy. The Company
has agreed favourable heads of terms for over 250 per cent of its
required volume of feedstock, secured the contract for a grid
connection and is now pursuing discussions with neighbouring
companies about provision of private wire offtake.
On 13 December 2021, the Company confirmed it was investigating
new offtake opportunities for the Project and that it was working
with partners toward feasibility work. On 18 July 2022, the Company
announced that it had selected Petrofac as its front-end
engineering design ("FEED") contractor, further confirming that,
following full review of multiple financial models for the Project,
technical feasibilities and updated site drawings, the Company and
its partners were considering a range of additional facilities
including for hydrogen production, battery storage and/or hydrogen
refuelling. All such options would be subject to further planning
permission and agreement of future owners of the Project, which the
Company intends to sell in whole or in part.
The primary focus of the Company now is pursuit of Project
investors to support FEED work on the CHP facility and development
of the several other potential facilities on the site.
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 20 3883 7009
David Palumbo / Nauman Babar
---------------------
Strand Hanson - Nomad & Financial Adviser +44 20 7409 3494
---------------------
James Harris / Richard Johnson
---------------------
Panmure Gordon - Joint Broker +44 20 7886 2500
---------------------
John Prior / Harriette Johnson
---------------------
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 20 7457 2381
Instinctif - General Media Enquiries +44 788 788 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
.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
AGRBGGDCDSXDGDG
(END) Dow Jones Newswires
September 30, 2022 06:45 ET (10:45 GMT)
Eqtec (LSE:EQT)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Eqtec (LSE:EQT)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
