TIDMEQT
RNS Number : 7540E
EQTEC PLC
03 March 2020
3 March 2020
EQTEC plc
("EQTEC", the "Company" or the "Group")
MOU for the development of first advanced gasification plant in
Greece
EQTEC plc (AIM: EQT), the technology solution company for
advanced gasification in waste to energy projects, is pleased to
announce the signing of a Memorandum of Understanding ("MOU"),
covering the key terms of the proposed cooperation for the
engineering design and installation of the first advanced
gasification plant in Greece.
Highlights
-- MOU covers EQTEC's role as technology provider in the
engineering design and installation of the first advanced
gasification plant in Greece, partnering with regional EPC
companies.
-- Bank funding in place for the first 0.5MWe plant.
-- The parties are also committing to the development of a
second, 1MWe plant, elsewhere in Greece.
-- EQTEC will shortly provide formal quotes for the full scope
of its works and proceed to enter into a binding agreement in
respect of the first 0.5MWe plant, which is expected to be
finalised in the coming weeks.
EQTEC has entered into the MOU with German EPC company, ewerGy
GmbH ("ewerGy") (which will operate in Greece via its local
partner, Eco Hellas SA), together with Greece based promoter and
project developer, Agrigas Energy SA ("Agrigas"), which will own
and operate the fully permitted 0.5MWe gasification installation in
Larissa, in central Greece (the "Initial Plant").
Under the MOU, it is intended that EQTEC will provide, inter
alia, its gasification technology to the Initial Plant as nominated
subcontractor to ewerGy. The feedstock for this plant will be
densified straw, corn and cotton stalk residues, which can be
sourced locally from farmers in the region. Commissioning of the
Initial Plant is expected to take place during Q1 2021.
Under the MOU, subject to the performance of the Initial Plant,
the parties have also committed to the development of a second 1MWe
plant (together with the Initial Plant, the "Project"), owned by an
affiliated party of Agrigas in another location in Greece, which is
currently in the planning approval process.
Agrigas has agreed funding for the Initial Plant from a local
bank in Greece. This local bank has utilised the services of TÜV
Hellas as technical advisor to carry out due diligence on EQTEC's
technology. TÜV Hellas' services will also be utilised as the
project manager up to the commissioning stage of the Initial
Plant.
In respect of the Initial Plant, the Company will shortly
provide formal quotes for the full scope of its works to ewerGy.
Once the budgets have been agreed, EQTEC and ewerGy will proceed to
enter into a binding agreement(s) in respect of the Initial Plant,
which is expected to be finalised in the coming weeks. Access to
the local bank funding and progression of the Initial Plant is
subject to such agreement(s) being signed. A further announcement
will be made in due course, as and when appropriate.
EQTEC, ewerGy and ECO Hellas have full confidence that the
successful closing of this first project will be followed by more
projects currently in the pipeline of ewerGy and ECO Hellas.
David Palumbo, CEO of EQTEC, commented:
"We are delighted to have been chosen as the preferred partner
for the first biomass project in Greece utilising advanced
gasification technology. The Mediterranean agro-industry sector is
one of our three main verticals, and entering Greece has been a
high priority for us. During the discussions with ewerGy and Eco
Hellas, we became convinced that we had found the right partners in
this very promising region for our proven advanced gasification
technology.
" The strong support in Greece for the Green Economy is driven
by the absence of adequate Energy from Waste infrastructure and by
the recently announced EU Green Deal Policy, of which the newly
elected President of Greece, Mrs Katerina Sakellaropoulou, is a
strong advocate. We remain confident of the opportunity that exists
for the Group in Greece and the Greater Mediterranean area. Our
intention is to develop this market through strategic partnerships
in the relevant geographies."
Georgios Paraskeopoulos, CEO of Agrigas, commented:
"We are pleased to announce this proposal for the construction
of the first biomass project in Greece with advanced gasification
technology. We are of the belief that through the technology
expertise of EQTEC, and the competence and potential of Agrigas and
ewerGy, we are in a position to take advantage of the great
prospects that are opening up to the Greek energy market.
" This plant reflects Agrigas' willingness to contribute
substantially to the development of a new model of the utilisation
of agricultural residues in Greece and in particular in the
Thessaly region, which is Greece's main agricultural region."
Gerd Kromarck, CEO of ewerGy, commented:
"We are very confident that together with our partners, EQTEC
and Agrigas, we will have an excellent first gasification plant in
Greece, that will set a very high standard in the market. ewerGy is
keen to expand its market position in the Balkans; we are locally
present in the region in order to support our clients by the
operation and maintenance."
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 21 2409 056
David Palumbo / Gerry Madden
Strand Hanson - Nomad & Financial
Adviser +44 20 7409 3494
James Harris / James Dance / Jack Botros
SI Capital Limited - Broker +44 1483 413 500
Nick Emerson / Jon Levinson
IFC Advisory - Financial PR & IR +44 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 .
About ewerGy
ewerGy is a German company with extensive experience in the
renewable energy market, in project development, implementation and
construction, as well as O&M.
For more information, please visit: www.ewergy-germany.com
About Agrigas Energy S.A.
Agrigas' activity is the design, construction and operation of
biomass plants for the production of electricity, heat and biochar.
Its primary focus is in the production of energy using the
gasification method by utilizing agricultural waste.
Agrigas installed an experimental gasification system in 2012
and, since then, has been experimenting with a wide range of
agricultural and non-agricultural residues, providing its
engineering team with the knowledge necessary to design and operate
gasification plants.
Furthermore, in recent years it has developed its own biomass
collection and storage network for the production and marketing of
high-quality animal feed.
For more information, please visit: www.agrigas.gr
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