EQTEC PLC Agreement to acquire Greek waste-to-energy project (9290O)
13 Octubre 2021 - 2:22AM
UK Regulatory
TIDMEQT
RNS Number : 9290O
EQTEC PLC
13 October 2021
13 October 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
Agreement to acquire waste-to-energy project in Greece
EQTEC plc (AIM: EQT), a world-leading gasification solutions
company building a cleaner waste-to-energy industry , is pleased to
announce that it has signed an agreement for the proposed
acquisition of a 5MWe project in Drama (the "Project"), North
Eastern Greece, through the recently established EQTEC Synergy
Projects Limited ("Synergy Aegean"), a joint venture ("JV") between
EQTEC and its Greek strategic partners, German EPC company, ewerGy
GmbH ("ewerGy") (operating in Greece via its local partner, ECO
Hellas M IKE).
Once acquired, the JV will lead the development of a new
biomass-to-energy plant (the "Plant"), generating 5MW green
electricity from locally and sustainably sourced forestry waste.
Due diligence, including financial and technical feasibility, has
been completed.
Completion of the acquisition of the Project is subject to
entering into of a Project Purchase Agreement, customary for this
type of transaction.
Highlights:
-- Synergy Aegean to acquire the biomass-to-energy Project
in Drama, North Eastern Greece;
-- The JV has signed a Preliminary Project Acquisition (the
"Agreement") for the acquisition of the Project via a Special
Purpose Vehicle ("SPV") to acquire the assets of the Project;
-- The JV is in discussions with a number of local banks to
provide the debt for the project funding at a Loan to Value
("LTV") ranging between 70 and 80%;
-- Active discussions with investors for the equity funding
for the SPV are currently underway, toward Financial Close
targeted for Q3 2022;
-- The Plant , once operational, is expected to achieve the
Company's baseline target unlevered IRR of 12% and the
JV team have identified commercial opportunities that if
implemented, will further increase project returns;
-- The acquisition involves all the associated assets of the
Drama project including all rights and permits required
for project development, build and operation as well as
biomass feedstock agreements;
-- The Plant, once operational, is expected to produce approximately
5MW of green electricity and up to 8MW of thermal output
which is critical for the region, from c. 35,000 tonnes
of locally sourced forestry waste;
-- The Project is considered of public interest due to its
location in one of the coldest regions in Greece: Nevrokopi,
where temperatures have reached minus 30(o) C and there
is no established infrastructure of heating networks. The
Project will also bring local employment in this region
of particularly high unemployment;
-- The Plant has all licenses, building permits, grid connection
and a power purchase agreement ("PPA") already in place;
-- The project EPC will be ewerGy; 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 that our Joint Venture in Greece is gaining
further momentum with the intended acquisition of this project in
Drama, after last month signing an agreement securing two
agriculture waste-to-energy projects in Livadia. All of our
projects in our Greek pipeline, now totalling five and with strong
potential for more, will help local farmers and forestry managers
to use the waste they produce in a way that supports a circular
economy and is beneficial for the environment and local
communities. This will be considered a project of public interest
as it addresses two critical local requirements: heating and
employment. Through this Project, we are continuing to extend the
reach of and apply our Advanced Gasification Technology in the EU,
demonstrating strong demand in this market for the more sustainable
approach to waste-to-energy that EQTEC can deliver."
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
----------------------------
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
----------------------------
+44 7554 014 188 / +44 7867
BECG - General Media Enquiries 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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