TIDMEQT
RNS Number : 6168V
EQTEC PLC
09 April 2019
9 April 2019
EQTEC plc
("EQTEC" or the "Company")
Operational and Project Update
EQTEC plc (AIM: EQT), the technology solution company for waste
gasification to energy projects, is pleased to provide an update on
recent operational and project developments.
Highlights
-- Significant increase in the level of international interest
in the Company's proprietary EQTEC Gasifier Technology ("EGT") from
both existing and potential new customers, developers and
engineering, procurement and construction ("EPC") contractors.
-- Advanced talks with a major business group in Spain to
develop projects in the industrial and agricultural waste sector in
Spain.
-- Advanced stage proposals for two refuse derived fuel ("RDF")
projects in the UK, where EQTEC would provide EGT and could act as
lead developer.
-- Engineering design work for Phoenix Energy's first power
plant delivered and invoiced. Commencement of construction expected
to begin later this year upon final granting of permits to Phoenix
Energy, which have been delayed largely as a result of forest fires
experienced in California in the autumn of 2018.
-- Together with Phoenix Energy, EQTEC is exploring further
project opportunities in the US biomass market and a commercial
proposal for a third project has been presented to Phoenix
Energy.
-- Commercial proposal submitted to the owners of the Usk
project to replace Brooke Energy as the developer of the project
and for EQTEC to provide the technology and EPC services.
Project Updates
Q1 2019 has seen a significant increase in the level of
international interest, including in the UK, the U.S. and Emerging
Markets, in the Company's proprietary EGT from EPC contractors,
existing and potential customers and development partners.
Accordingly, the Company is progressing a number of potential
deals.
The Company is in advanced talks with an existing client, a
major business group in Spain, to enter into a collaboration
agreement to promote and develop a number of projects including a
second plant at one of its locations. EQTEC's focus has been to
target projects tailored to the industrial and agricultural waste
sectors, where EGT can be employed.
The Company is at an advanced stage of negotiations with regard
to a significant RDF project in the UK, where it is proposed that
EQTEC will provide EGT and could act as lead developer. This is in
line with the Company's stated strategy of supplying technology to
large RDF plants in the UK.
In addition, the Company has signed a letter of intent with a
developer of renewable projects in the UK to identify new project
opportunities. Also, as announced on 20 March 2019, the Company was
pleased to note the exclusive collaboration agreement between
Urbaser S.A.U. ("Urbaser") and EBIOSS Energy SE, the Company's
largest shareholder, and their intention, subject to Urbaser
technical due diligence, to use EQTEC's gasification technology for
waste to energy gasification projects in Bulgaria, Greece,
Macedonia and potentially Romania.
Phoenix Energy
Further to the announcement of 15 January 2019, the engineering
design work for the first of Phoenix Energy's two planned power
plants, utilising the Company's EGT technology, has been
successfully delivered and invoiced. Phoenix Energy is awaiting the
final granting of permits for the project, which have been delayed
largely as a result of forest fires experienced in California in
the Autumn of 2018. Construction, commissioning and installation at
the project is expected to begin immediately once the permit
process has been completed.
Greg Stangl, Chief Executive Officer of Phoenix Energy,
commented:
"Phoenix Energy values the relationship with its partner, EQTEC,
and is grateful for the continuing support as we take the projects
forward. We are also looking at other project opportunities as we
develop our working relationship in the US market. We fully expect
these projects to proceed despite the delay with securing the
necessary authorisations, partly as a result of the forest fires in
Autumn 2018."
Usk
The Usk Project (previously known as the Zebec Energy project)
located in the municipality of Usk, Wales, is for a proposed
facility with the capacity to process c.42,000 tonnes of wood waste
per year and a power output of 6.4 MWe. Brooke Energy is no longer
involved in the Usk project and EQTEC has been working with the
site and project owner and has made a commercial proposal to the
project owners to become the developer of the project and provide
the technology and EPC services.
PT Citra
As previously announced, the Company has a Memorandum of
Understanding ("MOU") with PT. Citra Metro Jaya Energi, which is
part of the Energy division of the Citra Metro Group, a leading
group of companies headquartered in Indonesia involved in energy,
technology and telecommunications, to supply its EGT technology for
a 12 MWe power plant in Hanoi, Vietnam. EQTEC has been informed
that the client has changed the RDF production technology needed to
prepare the fuel for EQTEC's gasifier technology and the Company is
awaiting further information on how the EGT could be implemented
with this modification.
Ian Price, Chief Executive Officer of EQTEC, commented:
"We are delighted with the significant progress being made in
advancing towards final contract stage on a number of
opportunities. We are very pleased with the increased international
interest in EGT. EQTEC's aim is to build a growing, cash generative
business and we continue to review additional near term
opportunities, where we see potential to add considerable value to
our shareholders."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Enquiries
EQTEC plc +353 (0)21 2409 056
Ian Price - Chief Executive
Officer
Gerry Madden - Finance Director
Strand Hanson - Nomad, Financial
Adviser & Broker +44 (0) 207 409 3494
James Harris/Richard Tulloch/Jack
Botros
IFC Advisory - Financial PR
& IR +44 (0) 203 934 6630
Tim Metcalfe / Miles Nolan /
Zach Cohen
Notes to Editors
About EQTEC plc
EQTEC's business model involves sourcing and providing
assistance in developing waste elimination projects to which it
will ultimately sell its EQTEC Gasifier Technology ("EGT") and
O&M services. EGT enables project developers to construct waste
elimination plants and recover electrical and thermal energy from
the waste streams.
EQTEC sources projects that have a local supply of waste in need
of elimination and conversion. It builds relationships and brings
together the developers, the waste owners, the building contractors
and funders. It then supplies the energy recovery technology and
provides engineering services to the projects. Furthermore, EQTEC
will provide O&M services to the operating projects generating
recurring revenues over the life of the projects.
The Company is quoted on AIM and trades as EQT. Further
information on the Company can be found at www.eqtecplc.com
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END
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