TIDMEQT
RNS Number : 9317M
EQTEC PLC
24 September 2021
24 September 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
Establishment of Greek Joint Venture and
agreement to acquire waste-to-energy project with exclusivity on
additional project
EQTEC plc (AIM: EQT), a world-leading gasification solutions
company building a cleaner waste-to-energy industry , is pleased to
announce that it has established EQTEC Synergy Projects Limited
("Synergy"), 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). The
JV has also signed an agreement for the proposed acquisition of a
1MWe waste-to-energy gasification project in Livadia, Greece (the
"Project") and exclusivity for a second 1MWe project nearby.
The Company is the majority shareholder in the JV which will be
capitalised by both partners. The main purpose of the entity is to
source, qualify and develop projects by providing advisory and
development services to projects in the region. The local partners,
ewerGy and ECO Hellas will provide a Managing Director and local
relationships to resource the generated pipeline and drive projects
to financial close. Project SPVs will be established for each
qualified project opportunity. The JV will be the majority
shareholder of each Project SPV.
The formation of the JV in Greece follows a similar structure
which the Company announced in July, in which EQTEC established
Synergy Projects d.o.o. ("Synergy d.o.o."), a joint venture ("JV")
between EQTEC and its Croatian project development partner Sense
ESCO d.o.o. ("Sense ESCO"). The JV in Croatia has since completed
the acquisition of two projects in Croatia, including a second
EQTEC Market Development Centre through recommissioning of a 1.2
MWe plant in Belišće, which has existing EQTEC Advanced
Gasification Technology inside, announced on 11 August, and the
acquisition of a 1.2 MWe plant in Karlovac, announced on 14
September.
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 Projects Joint Venture to acquire the biomass-to-energy
project, ("Star I") in Livadia, Boetia, Greece from the
current owner;
-- The acquisition also includes exclusivity rights for Star
II, a project with similar characteristics under the same
terms of Star I and which is also located in Livadia and
about which due diligence will subsequently be carried
out;
-- The JV has signed a Preliminary Project Acquisition and
Exclusivity Agreement (the "Agreement") for the acquisition
of the Project via a Special Purpose Vehicle ("SPV") to
acquire the assets of the Project;
-- The JV has received a Term Sheets from a number 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
in the coming months;
-- The Plant 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
Star I 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
1 MW green electricity from c.7,500 tonnes of mixed agricultural
waste from local farmers;
-- The Plant has all licenses, building permits and a grid
connection and a power purchase agreement ("PPA") is 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:
"We have long identified Greece and the Aegean region as one
with a strong pipeline potential for EQTEC to bring advanced
gasification capabilities to more local farming communities. With
one project currently being constructed and a second in development
in Greece already, today we are further delivering on that promise
progressing the acquisition of Star I and the exclusivity rights
for Star II. Both plants are further examples of how we can source
and sustainably transform local agriculture waste into a
decentralised source of energy supply to local communities ."
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 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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