TIDMEQT
RNS Number : 9911L
EQTEC PLC
16 September 2021
16 September 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
Heads of Terms signed for additional investment in Billingham
RDF-to-energy project
EQTEC plc (AIM: EQT), a world-leading gasification solutions
company that is building the future of a cleaner waste-to-energy
industry, is pleased to announce that it has signed a Heads of
Terms (the "Agreement") with a strategic investor, Kibo Energy plc
("Kibo") (AIM: KIBO), for the proposed 25 MWe Billingham waste
gasification and power plant ( the "Project") at Haverton Hill,
Teesside, UK.
The Company will continue to lead the development of the Project
SPV, Haverton WTV Limited ("Haverton"), providing development
strategy and services for integrated planning, commercial
negotiation, funding and delivery readiness. Kibo's 54.54%
investment and participation is intended to accelerate development
progress, support pursuit of a wider range of commercial
opportunities and de-risk the subsequent construction and
commissioning phase.
Kibo and EQTEC rapidly identified a clear synergy and shared
outlook on how energy infrastructure projects should be robustly
developed and project managed successfully, making Kibo an ideal
investment and development partner in the Company's anchor
RDF-to-energy plant at Billingham.
The proposed investment by Kibo is subject to, inter alia,
finalisation of a Share Purchase and Shareholders Agreement and the
securing of the requisite funding by Kibo.
Highlights
-- It is expected that Kibo will acquire a 54.54% equity stake in the Project SPV;
-- EQTEC will retain 45.46% equity in the Project SPV;
-- To acquire its interest in the Project SPV, Kibo will
contribute GBP3 million, subject to securing such funding, to be
paid as an equity subscription to acquire shares in the Project
SPV;
-- Kibo will have the option to provide additional convertible
shareholder loan facilities to the Project SPV and/or convert
future project development fees into further equity in the
Project;
-- Project rights, held by Haverton, include all technology
licence agreements, all equipment supply and maintenance agreements
with EQTEC and all rights to the site under the existing agreements
with Scott Bros. Enterprises Limited;
-- Following the completion of the transaction, EQTEC will
invoice for its project development services to the SPV; and
-- EQTEC will remain as the lead development manager on the
Project, providing the design and core Advanced Gasification
Technology and retaining the maintenance portion of the O&M
contract upon commissioning.
Further announcements regarding the finalisation of binding
transaction documentation will be made in due course.
David Palumbo, CEO of EQTEC, commented:
"In the UK, our focus is on developing and commissioning the
country's first three commercially-successful gasification plants
which will convert local municipal waste into clean energy for
local communities.
"We are delighted to have Kibo as proposed joint investor and
developer in one of these projects, the Billingham RDF-to-energy
project. Their confidence in the potential that this plant has for
the local area, their commitment to investing in clean energy
projects and technologies, and our shared approach to how large
infrastructure projects like this should be successfully project
managed, will ensure our skillsets are combined to best achieve the
objectives for Billingham. We also believe that this partnership
with Kibo could evolve and expand into other projects and
markets.
"We know there is a better, cleaner and more efficient way to
use the municipal waste and convert it into value, sustainably,
rather than sending it to be incinerated or buried at landfill
sites. We look forward to driving this project forward towards
achieving that goal ."
Louis Coetzee , CEO of Kibo, commented:
"Kibo's commitment to the EQTEC project in Billingham is clear
and marks a key milestone in our new corporate strategy to solely
invest in commercially-sound, sustainable clean energy projects.
Our present focus is primarily on projects in the UK and Africa
that will realise their value in the near term, within 18-months.
We are very pleased to have joined forces with leading player EQTEC
to invest in and develop this plant further, and additionally see
potential for us to roll out its Advanced Gasification Technology
to our Africa projects and the Africa market in the future. The
acquisition aligns perfectly with Kibo's existing corporate
strategy and more specifically with our current UK project focus.
The Company is also very pleased with the progress it has already
made to secure the funding required for this transaction."
Further information about the Project
This announcement follows a number of updates made by the
Company in respect of the Project. Most recently, as announced on
19 July 2021, the project development and associated engineering
work, led by an EQTEC team, had produced a detailed design for the
core gasification process and equipment and a concept design for
the full plant. In July, reviews with potential funders, including
Kibo, were held as planned and the project team is currently
selecting delivery partners, including Tier 1 EPC companies.
EQTEC has already secured a grid connection offer for the
Project and completed technical due diligence with technology
insurance providers and Haverton WTV Limited had previously signed
a conditional Land Purchase Agreement for the land on which the
proposed plant will be constructed and operate. The Project has
existing planning permission for advanced thermal conversion and
EQTEC's revised planning approval both improves the economics of
the Project and reduces the size of the footprint of the plant.
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
-----------------------
James Harris / James Dance
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Arden Partners - Joint Broker +44 20 7614 5900
-----------------------
Paul Shackleton (Corporate) / Simon Johnson
(Sales)
-----------------------
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 / Matthew Young EQTEC@almapr.co.uk
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+44 7554 014 188 / +44
BECG - General Media Enquiries 7867 452 269
-----------------------
Carrie Lowe / Tom Gosschalk EQTEC@BECG.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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