TIDMEQT
RNS Number : 9831M
EQTEC PLC
27 September 2021
27 September 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
Agreement to acquire Southport RDF Project and Related Party
Transaction
EQTEC plc (AIM: EQT), a world-leading gasification solutions
company building the future of a cleaner waste-to-energy industry ,
is pleased to announce that the Company's wholly owned subsidiary,
Southport WTV Limited (the "Buyer"), has signed a Share Purchase
Agreement (the "SPA") with Rotunda Group Ltd ("Rotunda") and its
subsidiary Shankley Biogas Ltd, to acquire full ownership of the
Southport Hybrid Energy Park project (the "Project") from Rotunda
through the acquisition of Shankley Biogas Ltd (the "Project
SPV").
Highlights
-- Initial consideration of GBP382,000 from which the existing exclusivity payment of GBP100,000 will be deducted,
is payable on the achievement of certain conditions precedent related to development milestones of the Project on
or before a date 12 months from the date of signing of the SPA;
-- One of the conditions precedent is that the Company is granted a lease in relation to the Project sufficient for
the development and operation of the Project and on terms generally acceptable to the Buyer and any funder (in
their entire discretion); and
-- The issue of a fixed dividend share in the Buyer to Rotunda, which gives Rotunda the right to 20% of
distributable profits in Southport WTV Limited. This share carries no voting rights or entitlement to dividends
in EQTEC.
David Palumbo, CEO of EQTEC, commented:
"I'm delighted that EQTEC is taking another RDF-to-energy
project in the UK to the next stage of development. In signing this
agreement to acquire the Project SPV for Southport, we are closer
to bringing an innovative and sustainable type of waste-to-energy
facility to the local community, where we will source excess
municipal, commercial and industrial waste from the surrounding
area and convert it with our Advanced Gasification Technology into
green electricity. The transaction also supports our strategy to
incubate innovative energy transition projects applying EQTEC
technology, to then sell forward and bill for our development
services, technology solutions and maintenance."
About the Southport RDF-to-energy Project
The RDF-to-energy project comprises land at Watts Industrial
Estate, Crowland Street, Southport, Merseyside , where the site has
pre-existing Phase 1 permission to transform 80,000 tonnes of waste
in a waste management and anaerobic digestion facility, and 9MWe
with 2MW o f battery storage , exporting 11MWe to the grid annually
. The intended Phase 2 includes the addition of an advanced
gasification facility. The Company will provide updates as to
revised Phase 1 and the intended Phase 2 planning submission in due
course . The proposed plant, if approved, could convert over 55,000
tonnes of RDF annual for an estimated additional 6MWe to 8MWe of
green electricity. A pre-planning consultation has been carried out
with the local authority whereby Phase 1 and Phase 2 master plans
were welcomed by the local authority and given their support.
EQTEC expects to act as the project developer on the Project,
providing the design and core Advanced Gasification Technology and
retain a portion of the O&M contract after commissioning. As
the Project matures toward Financial Close, the Company intends to
sell a majority equity position on the Project SPV and invoice the
Project SPV for development services fees provided.
Related Party Transaction
During the twelve-month period ending 30 June 2021, Mr Ian
Pearson, the Company's Non-Executive Chairman, provided additional
Consultancy Services to the Group on ESG, Sustainability Reporting
and public policy/government engagement, in the amount of
EUR116,261 (the "Consultancy Services").
Ian Pearson is a Director of the Company and, as such, is a
related party as defined in the AIM Rules. As a result, the payment
to him for the Consultancy Services is a related party transaction
pursuant to Rule 13 of the AIM Rules. Accordingly, the independent
directors of the Company (being those directors other than Ian
Pearson), having consulted with the Company's Nominated Adviser,
Strand Hanson Limited, consider the terms of the payment for
Consultancy Services to be fair and reasonable insofar as the
Company's shareholders are concerned.
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
-----------------------
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 EQTEC@almapr.co.uk
-----------------------
+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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END
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