TIDMEQT
RNS Number : 6543B
EQTEC PLC
15 February 2022
15 February 2022
EQTEC plc
("EQTEC", the "Company" or the "Group")
Billingham Project Variation to the Land Purchase Agreement
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 confirms that,
further to its announcement on 26 February 2021, Haverton WTV
Limited ("Haverton") a wholly owned subsidiary of EQTEC, and Scott
Bros. Enterprises Limited ("Scott Bros") have reached an agreement
(the "Variation") to extend the existing, 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").
Key terms of the Agreement and Variation:
-- The consideration for purchase of the Project Site remains GBP8,600,000;
-- A deposit amount of GBP260,000 was paid by Haverton to Scott Bros
on 26 February 2021;
-- A further payment of GBP250,000 will be paid on or before 24 February
2022, with an additional payment of GBP500,000 to be paid on or
before 30 September 2022 to Scott Bros. These two payments will
be deducted from the total purchase price along with the previously
paid deposit;
-- The balance of GBP7,590,000 is payable at completion of the land
purchase, which must occur on or before 23 December 2022, (the
" Longstop Date ");
-- In addition, a further fee of GBP250,000 as consideration for the
Variation, will be paid by Haverton to Scott Bros on or before
24 February 2022;
-- All other conditions of the existing LPA remain the same regarding
satisfaction or waiver by Haverton of specified conditions prior
to the Longstop Date. These conditions refer to development and
financing of the Project, including: Haverton's having reached
financial close in respect of such financing; Haverton's having
agreed the form of key construction, operational, offtake and feedstock
contracts; and the Project's having been fully permitted by the
relevant planning and environmental authorities; and
-- Haverton and Scott Bros have agreed to transfer responsibility
for management of the grid connection from Scott Bros to Haverton
prior to the Longstop Date. The grid connection has already been
secured.
David Palumbo, CEO of EQTEC, commented:
"The Billingham project on Teesside continues to generate strong
and varied interest from investors, EPC and technology partners and
offtake purchasers, including potential customers for hydrogen or
biofuels . As we drive completion of feasibility studies on these
options and adjust the proposed business model for the plant, we
are increasingly excited about the impact we can make and the role
we can play in development of Teesside's leadership with innovative
energy provision in the UK. Our decision last year to defer this
project is already giving us the space to gather together an
exciting team and to actively engage a range of potential partners
in the area. We look forward to providing regular updates on our
progress and to sharing more news as we advance as an innovation
leader for clean baseload energy and biofuels . "
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
13 December 2021, and 1 February 2022, whereby the Company
announced it had deferred financial close from 2021 and had been
actively engaged with Tier 1 EPC companies planning and costing for
the front-end engineering design work. This work commenced on
schedule in January 2022. Since then, an EPC legal framework has
been defined by the Company.
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. The Company has also received updated indicative
terms for power offtake from three investment grade, bankable power
operators, with improved pricing in line with current wholesale
electricity market prices. The Company is evaluating these offers
in conjunction with the recent syngas-to-chemicals offtake
opportunities to find the optimal revenue mix for the Project.
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.
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
-----------------------
Strand Hanson - Nomad & Financial Adviser +44 20 7409 3494
-----------------------
James Harris / James Dance
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Arden Partners - Joint Broker +44 20 7614 5900
-----------------------
Paul Shackleton (Corporate) / Simon Johnson
(Sales)
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Canaccord Genuity - Joint Broker +44 20 7523 8000
-----------------------
Henry Fitzgerald-O'Connor / James Asensio
/ Patrick Dolaghan
-----------------------
Alma PR - Financial Media & Investor Relations +44 20 3405 0205
-----------------------
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
-----------------------
Carrie Lowe / Tom Gosschalk EQTEC@BECG.com
-----------------------
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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END
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