TIDMEQT
RNS Number : 5484B
EQTEC PLC
31 January 2020
31 January 2020
EQTEC plc
("EQTEC", the "Company" or the "Group")
Corporate and Operational Update
EQTEC plc (AIM: EQT), the technology solution company for waste
gasification to energy projects, is pleased to announce the
following update on its corporate and operational activities.
Subsequent to the change in Group leadership with the
appointment of David Palumbo as the Company's Chief Executive
Officer, announced on 16 September 2019, the Company has continued
its focus on three key verticals and further developed its strategy
to execute in these verticals, being:
Recovery of clean energy from biomass
-- Focused on biomass energy with projects in the 2.5 to 5MW
size range, particularly in the USA and Europe.
Elimination of waste streams in agri-food and industrial
sectors
-- Focused on energy recovery, typically in the 2 to 10MW
project size range, particularly in the Mediterranean area.
Elimination of Municipal Solid Waste ("MSW") and Refuse Derived
Fuel ("RDF") waste streams
-- Focused on projects typically in the 5 to 25MW range, particularly in the UK and Ireland.
This emphasis on these key verticals is the result of the
Company, under its change of leadership, further refining its
business model to focus on becoming a progressive technology
partner. The Company is creating, what the Directors believe to be,
a unique ecosystem in its industry, whereby EQTEC is establishing a
close group of strategic partners to work with, which spans
operators and developers, through to contractors and capital
providers.
During Q4 2019 and in Q1 2020 to date, the Directors believe the
Group has made significant progress with regard to its refined
strategy, as highlighted below:
Q4 2019 Highlights
-- Completed c.EUR155,000 Transports Metropolitans de Barcelona
("TMB") maintenance contract and increased proactive business
development activities in this area, leading to a developing
pipeline of potential new business for the Group, including with
regard to further upgrade and maintenance contracts in Spain.
-- Agreed an extension for the Billingham Energy Project MOU,
covering the proposed 25MW waste gasification and power plant, and
opened discussions with potential co-developers and funders. EQTEC
has instructed Northern Power to carry out the work to provide a
full quotation for the grid connection and this work is expected to
be completed within 45 days.
-- Hired a new business development executive in Spain, who is
focusing primarily on the agri-food and industrial sectors in the
Mediterranean.
-- Exclusivity Agreement signed for the proposed 1.18MW Biomasse 31 Project in France.
-- Equity raise of GBP958,500, before costs, completed in
December 2019, together with the issue of ordinary shares to
certain service providers at an agreed price of twice the equity
subscription price, thereby strengthening the balance sheet.
-- Reached Financial Close on the 2MW North Fork Project and
received a first payment of EUR880,000.
Q1 2020 Highlights to date
-- Completed the sale of certain equipment to Movialsa for
EUR300,000, which has been received, and agreed a collaboration to
use its 6MW plant in Spain as a showcase for EQTEC's proprietary
technology.
-- Approval for RDF testing at the University of Lorraine plant
in France. Discussions ongoing with a number of stakeholders to
create a consortium to carry out a testing programme of UK RDF at
the plant.
-- Advanced discussions with Phoenix Biomass Energy Inc
("Phoenix") to develop and strengthen the Group's collaboration
with Phoenix, both from an operational and business development
perspective.
-- North Fork Project design package for tender is nearly
complete by EQTEC's engineering team and a project kick-off meeting
in the USA with the EPC, Jenbacher and Phoenix has been scheduled
for the week commencing 10 February 2020.
In addition, the Group is advancing discussions with regard to a
number of ongoing business development initiatives, including:
-- Potential entry into the market in Greece via (i) a strategic
partnership for EPC, O&M and business development; and (ii)
exclusivity with a developer who has an existing pipeline in the
agricultural waste sector.
-- Project partnerships with potential investors in the USA.
-- Collaborations with developers in the UK and Ireland in
relation to RDF, anaerobic digestion and waste gasification
projects.
-- Collaboration with a large owner and operator of biomass
energy, district heating and energy from waste infrastructure, to
develop a portfolio of projects together.
David Palumbo, CEO of EQTEC, commented:
"Since being appointed as CEO in September 2019 I am very
pleased with the progress that EQTEC has made. As we move forward
in 2020, we will focus on executing our strategy with special
emphasis in seeking strategic partnerships to develop a portfolio
approach inside our core markets. We are already in advanced
discussions with a number of potential partners that could bring
not only projects, but also local capabilities. I believe EQTEC is
now well positioned to execute on its clearly defined strategy and
I look forward to providing further updates as our projects
progress and we enter into new ones."
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 +353 (0) 21 2409 056
David Palumbo / Gerry Madden
Strand Hanson - Nomad & Financial Adviser +44 (0) 20 7409 3494
James Harris / James Dance / Jack Botros
SI Capital Limited - Broker +44 (0) 1483 413 500
Nick Emerson / Jon Levinson
IFC Advisory - Financial PR & IR +44 (0) 20 3934 6630
Tim Metcalfe / Graham Herring / Zach
Cohen
Notes to Editors
About EQTEC plc
EQTEC is the technological solution partner for converting waste
to clean energy.
EQTEC mission is to provides sustainable technological solutions
to address two of the world's greatest challenges: managing rising
levels of waste and meeting the growing demand for clean
energy.
EQTEC's business model involves sourcing and providing
assistance in developing waste elimination projects which will
convert waste into clean energy, to which it will ultimately sell
its EQTEC Advanced Gasification Technology and O&M services.
EQTEC Advanced Gasification Technology 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.
EQTEC also seeks to provide O&M services to established
operating co-generation plants generating recurring revenues over
the life of the projects.
The Company is quoted on AIM, bears the Green Economy Mark
awarded by the London Stock Exchange 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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