TIDMEQT
RNS Number : 3571V
EQTEC PLC
13 December 2021
13 December 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
UK Projects and Trading Update
EQTEC plc (AIM: EQT), a world-leading technology innovation
company enabling the Net Zero Future through advanced solutions for
hydrogen, biofuels, SNG and other energy production, is pleased to
provide the following UK Projects update at the end of 2021.
Billingham Project update
The Billingham Project aims to install a 25 MWe waste
gasification capability built around EQTEC technology to transform
200,000 tonnes or more per year of refused-derived fuel (RDF) from
municipal solid waste into electricity, thermal energy and/ or a
range of other chemicals and fuels. In January 2021, the Company
confirmed it had secured planning consent for an improved scheme
with a lower environmental impact and better commercial
outcome.
In recent months, the Company has been actively engaged with
Tier 1 EPC companies planning and costing for the front-end
engineering design ("FEED") work, which is intended to commence in
early 2022.
Over the same period, developments in gas and power markets have
created new and compelling opportunities for offtake from the
plant. As a result, the Company has entered discussions with local,
industrial offtake customers for potential provision of a range of
syngas-to-power, syngas-to-heat and syngas-to-chemical
applications.
As these discussions progress and FEED work commences, the
Company anticipates steady progress toward financial close in
2022.
Deeside Project update
The Deeside Project seeks to create a complete, local
waste-to-energy solution with a material recovery facility ("MRF"),
a 2 MW anaerobic digestion ("AD") facility built around Anaergia,
Inc. ("Anaergia") technology and a 9.9 MWe gasification facility
built around EQTEC technology. The planned integrated facilitiy
will transform c.182,000 tonnes per year of municipal, commercial
and industrial waste into green electricity and other energy.
Development of the full project is being undertaken by the Company
in partnership with Logik Developments Limited ("Logik").
The Company announced in March 2021 that it had entered into a
formal, three-year Collaboration Framework Agreement ("CFA") with
Toyota Motor Manufacturing (UK) Limited ("Toyota") for exploration
of an innovative, circular and sustainable waste-to-energy solution
for Toyota's engine manufacturing plant in Deeside, including
potential supply of biomethane gas and green electricity as well as
conversion of manufacturing waste and reduction of the Toyota
plant's carbon footprint.
In October, the Company confirmed that the resolution to grant
planning consent from the County Council for the advanced
gasification facility was secured, following prior approval of the
site for the original plan of a recycling and AD facility.
In December, the Company announced its intent with Logik to
develop additional waste-to-value infrastructure on the Deeside
site. The Parties are currently conducting additional feasibility
studies for hydrogen and other biofuels to enhance the existing
sustainable RDF-to-energy work on the Deeside Project.
Both the Billingham Project and the Deeside Project are part of
the portfolio currently under review by a range of large-scale
infrastructure investors and owner-operators for potential funding,
commercial operation or both. The Company anticipates these
discussions will progress to exclusivity and due diligence in early
2022.
Billingham and Deeside financial close deferrals and impact on
Company revenue
In response to the new opportunities for both
projects-particularly for offtake, the Company has elected to defer
financial close for the Billingham and Deeside Projects until 2022.
The Company believes these opportunities deserve further
exploration and has focused its efforts on reviewing, modelling and
assessing them, toward expansion of even greater positive impact
for local communities and additional value for all
stakeholders.
As a result of the deferrals, the Company will not invoice
before the end of 2021 a total of c. EUR6 million in fees for
development services on the two projects, as it had previously
expected to do. The Company expects to recognise revenues from
these fees in 2022 and remains confident of both projects' reaching
financial close in the same period.
However, and as previously announced, the Company continues to
expect revenues in 2021 from technology sales to several entities
and projects, including Agrigas of Larissa, Greece ("Agrigas"), the
EQTEC Italia Market Development Centre ("MDC") in Gallina, Toscana,
Italy ("Italia MDC"), the Belišće, Croatia MDC ("Croatia MDC"), the
Karlovac, Croatia project ("Karlovac") and the Livadia, Greece
project ("Livadia 1"), as well as from development services fees to
the Croatia MDC, Karlovac, and Livadia 1.
With the deferral of financial close for its two largest
projects, the Company anticipates its total revenues for 2021 to be
in the range of EUR8 - 10 million (2020: EUR2.2 million),
representing strong growth. In line with these deferrals, the
Company currently forecasts an EBITDA loss (adjusted for one-off
share based payments) in the range of EUR2.5 - 3.5 million, prior
to closing additional projects that might fall into the current
financial year.
David Palumbo, CEO of EQTEC, commented:
"2021 has been a transformative year for us and we will enter
2022 with a stronger balance sheet position. We delivered financial
close on a number of deals, most importantly on two Market
Development Centres, both to be operational in 2022 and to become
showcases for our capabilities. We have accelerated conversion of
pipeline opportunities into well managed projects and this sets us
up for further, sustainable growth in 2022. On the one hand, we are
disappointed not to have closed on Billingham and Deeside this
year, but on the other, we believe these deals will develop into
even more compelling propositions for EQTEC, local communities and
our stakeholders. We are seeing growing interest in a wider range
of applications for our syngas capabilities and growing attention
from larger investors and highly reputable operators commited to
the energy transition. I look forward to reporting strong progress
in 2022 as we further leverage our platform for growth and scale in
a rapidly evolving market."
More information
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 / Nauman Babar
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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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