TIDMEQT
RNS Number : 1758I
EQTEC PLC
01 December 2022
01 December 2022
EQTEC plc
("EQTEC", the "Company" or the "Group")
Deeside Project SPV Sale and Trading Updates
EQTEC plc (AIM: EQT), a global technology innovator powering
distributed, decarbonised, new energy infrastructure through its
waste-to-value solutions for hydrogen, biofuels, and energy
generation, provides the following update regarding the sale of
Deeside WTV Limited ("Deeside WTV") and consequent Company trading
update for 2022.
Deeside WTV sale update
Following the Company's announcement on 26 September 2022 that
it, with Deeside WTV and Logik Developments Limited ("Logik"), had
signed non-binding Heads of Terms ("HoTs") for the acquisition by a
publicly quoted, corporate investor (the "Investor") of the project
at Deeside, Flintshire, UK that comprises a waste reception plant,
anaerobic digestion facility and EQTEC clean syngas technology
facility (the "Project"), the Company confirms that it and its
partners have been unable to reach mutually acceptable commercial
terms with the Investor toward formalising the Project's sale and
that further discussions with the Investor will not be pursued.
Since the announcement of the HoTs, the Company has received and
is responding to additional interest in the Project from a number
of potential funders committed to decarbonised, new infrastructure
for waste management and energy generation . Any agreement would be
in line with the Company's stated business strategy of focusing its
efforts on high-margin technology and innovation services, engaging
partners and customers to develop and fund the capital projects
that will deploy EQTEC's technologies.
To facilitate the transaction with the Investor, and as
announced on 26 September 2022, Deeside WTV and Logik had
previously agreed to further extend the longstop date specified in
the share purchase agreement signed on 07 December 2020 (as amended
on 6 December 2021, 1 April 2022 and 30 June 2022) (the "SPA"), to
28 February 2023 (the "Long Stop Date"). The Company and its
partners have agreed that the Long Stop Date is to remain
unchanged.
Trading update for the current financial year
As a direct result of the Company's and its partners' having
been unable to formalise a contract with the Investor for the sale
of the Project, the Company will be unable to recognise within FY
2022 revenues totalling GBP4.5 million (EUR5.2 million) related to
the Deeside SPV sale.
In light of this, the Company has updated its overall FY 2022
revenue forecast, as presented in its Interim Results on 29
September 2022, to EUR5 - 7 million. T he Company forecasts an
updated FY 2022 EBITDA loss in the range of EUR4 - 5 million. In
its Interim Results, the Company noted that both revenue and EBITDA
guidance were predicated on the progression of projects with
funding, and in particular on progress with the Deeside
project.
David Palumbo, CEO of EQTEC, commented:
"On the one hand, it is disappointing to see this negotiation
for purchase of the Deeside project fall through, with the
consequential impact on our 2022 forecast. On the other hand, we
view this setback as temporary and not a major block to progress
with the Project. We have already turned to other potential
investors and committed ourselves to securing an alternative
financing solution quickly. In terms of funder interest, the
Company is in a very different position now than a year ago. We
have a number of prospective funders interested in the Deeside
project, and we increasingly find ourselves speaking with bigger
and better organised companies with clearer reasons for working
closely with new infrastructure technology providers such as EQTEC.
We remain committed to announcing the funding of Deeside in early
2023 and to moving at pace from there toward financial close and
construction start."
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
---------------------------
Strand Hanson - Nomad & Financial Adviser +44 20 7409 3494
---------------------------
James Harris / Richard Johnson
---------------------------
Panmure Gordon - Joint Broker +44 207 886 2500
---------------------------
John Prior / Harriette Johnson
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Canaccord Genuity - Joint Broker +44 207 523 8000
---------------------------
Henry Fitzgerald-O'Connor / James Asensio
/ Patrick Dolaghan
---------------------------
Alma PR - Financial Media & Investor Relations +44 203 405 0205
---------------------------
Josh Royston / Sam Modlin EQTEC@almapr.co.uk
---------------------------
+44 207 457 2381 / +44 788
Instinctif - General Media Enquiries 788 4794
---------------------------
Chris Speight / Tim Field EQTEC@instinctif.com
---------------------------
Further information about the Project
The Project comprises 6.27 hectares of land o ff Weighbridge
Road on Deeside Industrial Estate and adjacent to the Toyota
Deeside Engine Plant , in Flintshire, north Wales, UK, on a site
that was formerly a Gaz de France power station.
The prospective, multi-technology plant would include a material
recovery facility ("MRF") and anaerobic digestion ("AD") facility
that would deploy technologies from Anaergia, Inc. ("Anaergia"),
with an advanced thermal conversion ("ATC") facility that would
deploy EQTEC's syngas technology.
The MRF would process 182,000 tonnes per year of municipal solid
waste ("MSW"), separating recyclables and sending them off site for
processing, separating biogenic materials for processing at the AD
facility and producing refused-derived fuel ("RDF") from the
remaining materials, including plastics, for processing by the
EQTEC ATC facility. The 2.0 MW AD facility would produce 5.5
million NM(3) per year of biomethane, with 17,000 MWh of the gas
(c. 29%) exported to Toyota and the remainder exported to the
national grid. The 9.9 MW ATC facility would receive 77,000 tonnes
per year of RDF from the MRF and produce 77 - 87,000 MWh of
electricity per year, of which 27,000 MWh (c. 35%) would be
exported to Toyota, with the remainder exported to the national
grid. There is additional potential to apply the ATC facility to
production of hydrogen, for which initial feasibility work has been
undertaken.
At present, the Company is lead developer for the Project, in
partnership with Logik, which owns the land on which the Project is
being developed. As announced on 28 October 2021, Flintshire County
Council's Planning Committee resolved to grant planning permission
for the proposed plant. The planning authority's decision follows
its prior approval of the site for the original plan of a recycling
and AD facility.
The Project is one of three waste-to-energy/fuel projects the
Group is developing in the UK, including others at Billingham,
Teesside and Southport, Merseyside.
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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