TIDMEQT
RNS Number : 4285Q
EQTEC PLC
26 February 2021
26 February 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
Billingham Land Purchase Agreement
EQTEC plc (AIM: EQT ), a world leading gasification technology
solutions company for sustainable waste-to-energy projects , is
pleased to announce that, further to the Company's announcement of
18 December 2020, Haverton WTV Limited (the "Buyer", which is a
wholly owned subsidiary of EQTEC) and Scott Bros. Enterprises
Limited ("Scott Bros") have signed a conditional Land Purchase
Agreement ( the "LPA") relating to the land on which the proposed
up to 25 MWe Billingham waste gasification and power plant ( the
"Project") at Haverton Hill, Billingham, UK, will be constructed
(the "Project Site").
David Palumbo, CEO of EQTEC, commented:
"I am very pleased with the progress of the Billingham Project,
which now has an experienced project delivery team in place. We are
assembling the optimal construction resources and delivery model
for the Project. The acquisition of the Project Site means we
remain on track to deliver the UK's first sustainable
waste-to-energy plant using EQTEC's leading advanced gasification
technology and solutions.
"Billingham is estimated to convert 200,000 tonnes of
non-recyclable household and commercial waste each year into 25MW
of green electricity and 34MW of heat production. The Project is
expected to create jobs and deliver environmental and economic
improvements to the local community as well as, we believe,
attractive returns for our shareholders ."
Key terms of the LPA
-- The consideration for the purchase of the Project Site is
GBP8,600,000. A deposit amount of GBP260,000, from which the
existing exclusivity payment of GBP100,000 will be deducted, is
payable immediately. The balance of GBP8,340,000 is payable at
completion of the land purchase, which must occur on or before a
date 12 months from the date of signing of the LPA (the " Longstop
Date " ).
-- The LPA is conditional on the satisfaction or waiver by the
Buyer of certain conditions precedent on or before the Longstop
Date, relating to the development and financing of the Project,
including that the Buyer has reached financial close in respect of
such financing, the Buyer having agreed the form of the key
construction, operational, offtake and feedstock contracts, and the
Project being fully permitted by the relevant planning and
environmental authorities.
Further information about the Project
This announcement follows a number of updates made by the
Company in respect of the Project, most recently, as announced on
27 January 2021, when a resolution was received from
Stockton-on-Tees Borough Council to grant planning approval for an
improved scheme. The scheme was proposed by the Company in order to
reduce the environmental impact of the Project and improve its
commercial outcome.
The Project at Billingham, UK, is part of a number of projects
being reviewed by a European owner-operator of waste-to-energy
infrastructure. It is currently expected that, following completion
of a final credit review and requisite documentation, the European
owner-operator will provide the financing required for the
construction phases and then commercially operate the plants.
Assuming the requisite funding is provided, EQTEC expects to act
as the co-developer on the Project, providing the design and core
advance gasification technology and retaining a portion of the
O&M contract.
EQTEC has already secured a grid connection offer for the
Project and completed technical due diligence with technology
insurance providers. In addition, ongoing discussions with
potential funders and co-developers are progressing well. The
Project has existing planning permission for advanced thermal
conversion and EQTEC's revised planning approval both improves the
economics of the Project and reduces the size of the footprint of
the plant.
Following full commercial EPC offers being reviewed and
negotiated to contract, a final decision will be made with regards
to the funding structure for the Project, on which EQTEC will then
provide an update to shareholders.
More information: existing EQTEC plants and waste to clean
energy market opportunities
To date, four commercial plants have been built and are using
EQTEC's advanced gasification technology, which is proven and
patented for sustainable waste-to-energy projects. The oldest such
plant, built in 2011, has operated for over 125,000 independently
audited engine hours, receiving highly commendable feedback from
leading gas engine company Jenbacher relating to purity of the
syngas, reliability and efficiency.
EQTEC's technology and solutions can significantly improve both
the economic and environmental impact of many waste-to-energy
projects, with no harmful or toxic emissions. The technology has,
in the Board's view, the potential to become a new UK and global
standard for many traditional waste-to-energy facilities to
collaborate with, reducing reliance on increasingly less attractive
waste elimination methods and delivering new resilient and locally
based clean energy infrastructure across the UK and
internationally.
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
------------------------------
Arden Partners - Broker +44 20 7614 5900
------------------------------
Paul Shackleton (Corporate) / Simon Johnson
(Sales)
------------------------------
Maitland/AMO - Communications & PR/IR adviser +44 20 7379 5151
------------------------------
James Benjamin/Rhys Jones EQTEC-maitland@maitland.co.uk
------------------------------
About EQTEC plc
EQTEC is a world leading gasification technology partner with
proven proprietary patented technology for sustainable
waste-to-value applications.
EQTEC designs and supplies advanced gasification solutions that
have a higher efficiency product offering and are modular and
scalable from 1MW to 25MW. EQTEC's versatile solutions are
independently proven to process over 50 different types of
feedstock, including municipal waste, agricultural waste, biomass
and plastics with no hazardous waste or toxic emissions . EQTEC's
solutions produce a uniquely pure high-quality synthesis gas
(syngas), that is capable of being used for the widest applications
in the creation of energy, hydrogen and biofuels.
EQTEC's proprietary technology design together with deployment
and maintenance capabilities mitigate the risks when using third
party equipment. EQTEC's Technology Integration capabilities enable
the Group to lead collaborative ecosystems that build sustainable
waste elimination and green energy infrastructure.
The Company is quoted on AIM (ticker: EQT) and the London Stock
Exchange awarded EQTEC the Green Economy Mark that 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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