TIDMEQT
RNS Number : 5386P
EQTEC PLC
21 June 2022
21 June 2022
EQTEC plc
("EQTEC", the "Company" or the "Group")
Bank loan term sheet and eligibility for National Recovery and
Resilience Plan
for Livadia, Greece project
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 , is pleased to
announce receipt and acceptance of non-binding Heads of Terms
("HoTs") with Optima Bank S.A. ("Optima") for a debt facility (the
"Facility") to support construction of a 1MWe waste-to-energy
project at Livadia, in Boeotia, Greece ( the "Project") .
Heads of terms
The Facility proposed in the HoTs would provide senior debt up
to 75% LTV of the total capital required for the Project.
The HoTs were agreed between Optima and EQTEC Synergy Projects
Limited ("Synergy Projects"), the Company's joint venture ("JV")
with ewerGy GmbH ("ewerGy") and ECO Hellas M IKE ("ECO Hellas"),
subject to Optima final credit approval. The balance of capital on
the Project is currently held as equity by Synergy Projects, but
the JV partners are in discussions with institutional funds focused
on energy transition infrastructure, for the sale of project equity
on Livadia and other projects in the broader portfolio they are
jointly pursuing under the JV.
The Project, originally announced by the Company in September
2021, will result in construction of a waste-to-energy gasification
plant in Livadia, Boeotia, Greece (the "Plant") that, once
operational, is expected to produce a minimum of 1MW green
electricity from c. 7,500 tonnes of mixed agricultural waste from
local farms.
Toward full contract of the loan, Optima has selected TÜV
HELLAS, a subsidiary of TÜV NORD ("TÜV"), to certify the Project
and act as independent engineer. In its role, TÜV will assess the
viability of the Project based on the site and plan, the
development strategy, the technology and delivery risks. The work
required for the execution of the loan is expected to be completed
at the end of Q3 2022.
Additional funding support
Synergy Projects has appointed Grant Thornton Greece ("Grant
Thornton") to help the Company and its partners with the
implementation of the proposed investment plan of the Project to be
financed through the Recovery and Resilience Facility ("RRF") for
Greece. Grant Thornton will carry out the analysis of the
investment strategy and the consistency with the objectives set by
the Recovery and Resilience Mechanism, the analysis of key
eligibility parameters of the RRF, support development of business
plans, prepare requisite documentation, submit the investment file
and monitor the application process.
The RRF is part of a National Recovery and Resilience Plan,
launched in Greece and other parts of Europe to mitigate the
economic and social impacts of the coronavirus pandemic and make
the economy and society more sustainable, resilient and better
prepared for the challenges and opportunities of the green and
digital transitions. Greece is aiming the RRF in part at increasing
the share of renewables in the energy mix while reducing its
traditional reliance on solid fossil fuels.
Synergy Projects anticipates that all projects currently in its
pipeline for Greece will qualify for funding under the RRF, making
available low-cost subsidised debt for the projects. Optima has
indicated interest in financing further projects developed by the
JV under the RRF.
David Palumbo, CEO of EQTEC, commented:
" We are pleased and impressed with the persistent dedication of
the Greek private and public sectors in supporting technology
innovation for Net Zero energy solutions. Particularly as economies
and societies struggle in the aftermath of the Covid pandemic, we
are encouraged by this sort of support in favour of innovation that
will transition communities away from fossil fuels by providing
local, baseload energy from local waste. We see this business model
gaining traction in so many of our target markets and look forward
to accelerating its implementation across Greece and beyond."
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014, as it
forms part of United Kingdom domestic law by virtue of the European
Union (Withdrawal) Act 2018, as amended, 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
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Strand Hanson - Nomad & Financial Adviser +44 20 7409 3494
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James Harris / James Dance
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Arden Partners - Joint Broker +44 20 7614 5900
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Ruari McGirr (Corporate) / Simon Johnson
(Sales)
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Canaccord Genuity - Joint Broker +44 20 7523 8000
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Henry Fitzgerald-O'Connor / James Asensio
/ Patrick Dolaghan
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Alma PR - Financial Media & Investor Relations +44 20 3405 0205
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Josh Royston / Sam Modlin / Matthew Young EQTEC@almapr.co.uk
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+44 (0) 20 7457 2381 /
Instinctif - General Media Enquiries +44 (0) 7887 884794
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Chris Speight / Tim Field EQTEC@instinctif.com
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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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