TIDMEQT
RNS Number : 8831Z
EQTEC PLC
16 January 2024
16 January 2024
EQTEC plc
("EQTEC", the "Company" or the "Group")
Joint Venture with CompactGTL towards new business in
renewable synthetic fuels, including sustainable aviation
fuel
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, is pleased to announce that it has set up a new joint
venture company (the "JV") with CompactGTL Limited ("CompactGTL")
(together with the Company, the "Partners"), a leading, small
scale, modular, gas-to-liquids technology company specialising in
the production and use of synthetic fuels from gases, including
natural gas, synthesis gas and off-gases. The JV will pursue
implementation of an integrated, waste-to-liquid fuel solution
based on EQTEC syngas technology and CompactGTL gas-to-liquid
conversion technology (the "Solution").
The JV is owned in equal shares of 50% by the Company and
CompactGTL. The Partners intend that the JV become an innovator and
licensor of technology for liquid fuels produced from waste,
including transport fuels such as sustainable aviation fuel
("SAF"). The JV's immediate objective is formation of a consortium
of investors to fund a commercial-scale, first-of-a-kind reference
plant that proves the viability of the Solution (the "Reference
Plant"). The Solution would enable new lines of business for both
Partners.
Establishment of the JV represents a next step following work
undertaken by the Partners under the collaboration framework
agreement announced by the Company on 7 July 2022 (the "CFA").
Under the CFA, the Partners agreed to collaborate for the design,
development, construction and operation of waste-to-fuel projects
and other synthetic fuel and energy infrastructure projects, with
an initial focus on small-scale, modular, waste-to-fuel plants.
Since execution of the CFA, the Company and CompactGTL have
together pursued funding, identified project opportunities and
undertaken joint design and costing to build gas-to-liquids R&D
capabilities at EQTEC's syngas pilot plant at the Université de
Lorraine's Laboratoire d'Études et de Recherche sur le Matériau
Bois ("LERMAB") facility in Épinal, France.
The Partners have also completed feasibility work toward the
Reference Plant, through which they confirmed that the modular and
scale capabilities of both EQTEC and CompactGTL technologies allow
for construction of the Reference Plant and subsequent plants at
lower cost and shorter timescales than has been possible by other
waste-to-liquid configurations. The Reference Plant is expected to
process 150 tonnes per day of refuse-derived fuel from municipal
waste ("RDF") to produce 160 barrels per day of synthetic crude
("syncrude") at 90% annual operational efficiency. If processed,
the syncrude would be further refined to produce c. 11,700 litres
per day of SAF, c. 8,650 litres per day of diesel and c. 5,000
litres per day of naphtha. The total Capex for building the
Reference Plant estimated through the feasibility work is c. GBP60
million, with roughly a third of that for purchase of EQTEC
technology and another third for purchase of CompactGTL
technology.
As the Partners intend to go to market through the JV with an
integrated, waste-to-liquid fuel solution proven through the
Reference Plant, the Solution is expected to significantly de-risk
projects seeking reliable, SAF or other liquid fuel capabilities.
The Partners intend to apply the Solution in support of the ground
transport, airline and other industries.
The Partners have already identified a number of potential
investors for both the R&D integration at LERMAB and for the
Reference Plant and through the JV will pursue closure of funding,
at project level, and development of the Reference Plant. The
Company will make additional announcements in due course about work
at LERMAB and work on the Reference Plant.
David Palumbo, CEO of EQTEC, commented:
"The versatility of EQTEC's syngas technology makes renewable
synthetic, or drop-in, fuel production possible. But more than
that, the quality of syngas that EQTEC technology enables is likely
to result in a much better performance of the gas-to-liquid
reactors than other syngas technologies could offer. That would
mean a higher yield of liquid fuel from a lower volume of
feedstock, higher productivity and efficiency and greater
commercial returns.
"We are still at the early stages of our work on drop-in fuels,
but the potential is great. CompactGTL's gas-to-liquid capabilities
are already proven for natural gas and now we will work towards
proving them for waste-to-liquid fuels, including SAF and maritime
fuels. Given the huge interest in SAF and other drop-in fuels in
the market and the funding we can see going into this market,
waste-to-liquids is a market in which we want to participate as
soon as possible."
Anar Asgarov, CEO of CompactGTL, commented:
"CompactGTL's technologies have already established a strong
track record in the fossil fuel world, and we are dedicated to
establishing an even better record with renewables. The market for
clean transport fuels is growing quickly and we want to be at the
forefront of it.
"Gas-to-liquid technology is difficult, but we have made it
work. The bigger problem to solve for is high quality syngas, which
is why we have turned to EQTEC, who have made high-quality syngas
work. We look forward to combining two successful technologies and
making them work together. We believe this joint venture is the
beginning of something truly exciting for the renewables sector and
especially for liquid fuels."
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
David Palumbo / Jeffrey Vander Linden +44 20 3883 7009
Strand Hanson - Nomad & Financial Adviser
James Harris / Richard Johnson +44 20 7409 3494
----------------
Global Investment Strategy UK Ltd - Broker
Samantha Esqulant +44 20 7048 9045
----------------
Fortified Securities - Broker
Guy Wheatley +44 20 3411 7773
----------------
Panmure Gordon - Broker
John Prior / Hugh Rich +44 20 7886 2500
----------------
About CompactGTL
CompactGTL ("CGTL"), with headquarters in the UK, is one of the
world's leading, small scale, modular gas-to-liquid (GTL)
companies. Since its inception in 2006, CGTL has focused its
technology development and commercialisation programme on the
upstream oil & gas sector, recognising problematic stranded gas
as the most compelling market opportunity.
CGTL has focused its development activities on delivering what
commercially viable plants need to achieve and has developed a
unique, patent- protected and proven GTL process utilising Fischer
Tropsch (FT) catalytic conversion. The CGTL small- scale GTL
technology has been proven to work for the conversion of associated
gas into synthetic liquids at the point of production. The
technology has powerful oil company endorsement by Petrobras who
successfully operated CGTL's Commercial Demonstration Plant for 3
years in Brazil.
CGTL sees a huge new opportunity to transition the company from
a focus on primary fossil derived feedstocks to a focus on biogenic
feedstocks, such as residual biomass, refuse derived fuels and
municipal solid wastes, that can be turned into valuable and
sustainable liquid fuels. To achieve this CGTL has partnered with
EQTEC and believe that there are significant synergies in the
integration of CGTL's FT technology and EQTEC's proven ability to
produce high quality synthesis gas from a range of feedstocks.
About EQTEC
As one of the world's most experienced thermochemical conversion
technology and engineering companies, EQTEC delivers waste
management and new energy solutions through best-in-class
innovation and infrastructure engineering and value-added services
to owner-operators. EQTEC is one of only a few technology providers
directly addressing the challenge of replacing fossil fuels for
reliable, baseload energy. 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, specifies and delivers clean, syngas production
solutions in the USA, EU and UK, with highly efficient equipment
that is modular and scalable from 1MW to 30MW. EQTEC's versatile
solutions process 60 varieties of feedstock, including forestry
waste, agricultural waste, industrial waste 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 renewable 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 the London Stock Exchange's Alternative
Investment Market (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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January 16, 2024 08:16 ET (13:16 GMT)
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