TIDMEQT
RNS Number : 7558L
EQTEC PLC
14 September 2021
14 September 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
Acquisition of gasification waste-to-energy plant in Croatia
EQTEC plc (AIM: EQT), a world-leading gasification solutions
company that is building a cleaner waste-to-energy industry , is
pleased to announce the completed acquisition of a 1.2 MWe
waste-to-energy gasification plant in Karlovac, Croatia (the
"Plant"), through Synergy Projects d.o.o. ("Synergy Projects"), a
joint venture (the "JV") between the Company and its Croatian
project development partner Sense ESCO d.o.o. ("Sense ESCO").
Located in the Industrial Zone, Korana in Karlovac, the site
contains a decommissioned plant which originally employed an early
gasification technology from a third party. The plant was not able
to achieve the designed operational availability and had to be
closed. The Company's intention is to redesign and reconfigure the
Plant to incorporate the patented, proprietary EQTEC Advanced
Gasification Technology at the centre. When subsequently
commissioned, it will transform locally sourced wood chips and
forestry wood waste from regional forests into green electricity
for use by the local community.
This acquisition is in line with the Company's strategy to
recover decommissioned gasification plants employing other
technologies, in order to further establish it as the dominant and
reliable technology partner by increasing the number of operating
plants employing EQTEC Advanced Gasification Technology in the near
term. It follows the acquisition of a 1.2 MWe waste-to-energy plant
in Belišće , Croatia, announced on 11 August 2021.
Highlights:
-- Synergy Projects Joint Venture has now acquired the
biomass-to-energy plant in Karlovac, Croatia;
-- The JV has signed a Property Purchase and Transfer Agreement
(the "Agreement") for the acquisition and funding of the project
via a Special Purpose Vehicle ("SPV") to acquire the land and
assets of the Plant for an aggregate consideration of
EUR1,200,000;
-- The acquisition of the plant by the JV was funded by the
Company via a EUR1,200,000 loan that is intended to be converted
into privately placed bonds to meet local corporate
requirements;
-- The JV currently is 100% owned by the Company, with 20%
equity to be transferred to Sense ESCO in the near term and an
additional 20% subject to performance milestones;
-- Active discussions with investors are currently underway,
toward financial close in the coming months;
-- The Company estimates that the Plant will generate an
unlevered IRR of 12% and annual EBITDA in excess of EUR700,000;
-- The contract sales value to EQTEC for the Plant is expected
to be c.EUR4.5 million in technology and engineering. The contract
is expected to be paid in instalments, starting at financial close
and continuing throughout the construction and commissioning
period, which is anticipated to be 12 months;
-- The Plant is expected to produce approximately 1.2MW green
electricity from c.7,500 tonnes of locally sourced wood chips and
forestry waste biomass per year from regional forests ;
-- The Plant has all licenses, permits and a grid connection and
a power purchase agreement ("PPA") is already in place. The site
has further 2MW of grid availability and the Company plans to apply
for additional PPA to further expand the Plant;
-- The Plant will also produce high quality biochar to supply
the growing demand of this commodity in Europe;
-- In addition to being Advanced Gasification Technology
supplier to the Plant, EQTEC is to be contracted as the O&M
contractor after commissioning;
-- The EPC contractor for the Project will be COS.M.I. S.r.l.
("COSMI"), a company with successful experience in building EQTEC
plants;
-- The Plant is expected to be updated, recommissioned and
repowered for operations towards the end of 2022; and
-- Once the optimal financing structure is secured for the
Plant, the Company will make further announcements
David Palumbo, CEO of EQTEC, commented:
"I am very pleased to announce the acquisition of a second
sustainable waste-to-energy plant in Croatia, after very recently
acquiring a similar plant in Belišće, which we will recommission
and operate as the country's EQTEC Market Development Centre. In
partnership with the Sense ESCO team, our Croatian Joint Venture is
focused on reducing the amount of forestry waste wood biomass in
the local areas in which these two projects will operate,
leveraging our Advanced Gasification Technology, with the low
emissions profile and high operating efficiency it offers, to
generate clean energy and in locations where it is also beneficial,
increasing valuable high-quality biochar."
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 / N auman Babar
-----------------------
Strand Hanson - Nomad & Financial Adviser +44 20 7409 3494
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James Harris / James Dance
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Arden Partners - Joint Broker +44 20 7614 5900
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Paul Shackleton (Corporate) / Simon Johnson
(Sales)
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Canaccord Genuity - Joint Broker +44 20 7523 8000
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Henry Fitzgerald-O'Connor / James Asensio
/ Patrick Dolaghan
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Alma PR - Financial Media & Investor Relations +44 20 3405 0205
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Josh Royston / Sam Modlin / Matthew Young EQTEC@almapr.co.uk
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+44 7554 014 188 / +44
BECG - General Media Enquiries 7867 452 269
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Carrie Lowe / Tom Gosschalk EQTEC@BECG.com
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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
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