TIDMEQT
RNS Number : 7082F
EQTEC PLC
12 July 2023
12 July 2023
EQTEC plc
("EQTEC", the "Company" or the "Group")
Sale of France Market Development Centre to Idex
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 is pleased to announce that it has agreed with French
infrastructure owner and utility company Idex to the sale of 95% of
the share capital of Grande-Combe SAS ("Grande-Combe"), the project
company for the Company's France Market Development Centre ("MDC")
and the project to construct and commission it ("France MDC").
Idex's acquisition of Grande-Combe from the Company has been
formalised through execution of a share-purchase agreement (the
"SPA") and a shareholders' agreement (together with the SPA, the
"Agreement"). Under the terms of the Agreement, Idex acquires the
project for construction and commissioning of France MDC and EQTEC
remains the integrator and licensor of core technology, also
retaining the right to utilise France MDC as a MDC.
Highlights
-- Under the SPA, Idex acquires 95% of the share capital in
Grande-Combe, with EQTEC retaining a 5% carried interest;
EQTEC's carried interest requires no financial investment
by EQTEC;
-- In respect of the acquired share capital, the Company receives
a fixed consideration of EUR750,000, payable at completion
of the transaction (the "Fixed Consideration");
-- In addition to the Fixed Consideration, the Company is eligible
to receive additional payments up to full commissioning
of the France MDC, subject to achieving performance milestones
and for a combined total of up to EUR750,000;
-- In addition, under the Agreement, EQTEC will receive fees
for engineering services, equipment, commissioning and licensing
over the period Q4 2023 - Q1 2025, estimated to amount in
total c. EUR15 million; and
-- Under the Agreement, the Company is entitled to utilise
France MDC for one prospective client visit per month, with
more visits possible under specific terms.
The Agreement follows the Company's announcement on 27 March
2023 that it and Idex had been awarded a project by the Limoges
Métropole in Nouvelle-Aquitaine, France through which the partners
intend to commission a plant able to convert up to 45,000 tonnes
per year of mixed waste, including contaminated wood waste, into up
to nine million normal cubic metres per year of renewable natural
gas, with Idex developing, owning and operating the plant.
The Agreement supports the Company's business strategy of
working with top-tier partners able to support the development,
construction, commissioning and operations of plants running EQTEC
technology, so that the Company may focus on executing and earning
revenue from its core capabilities of technology development and
engineering.
David Palumbo, EQTEC CEO, commented:
" We believe this Agreement cements our commitment to the live
operation of the France MDC whilst evidencing the growing profile
of EQTEC technology among well-established utilities and operators
of energy infrastructure. This third MDC and second project in
partnership with Idex, which is owned by leading private equity
firm Antin Infrastructure Partners, indicates growing demand from
innovative, blue-chip partners and funders to build and operate new
energy infrastructure powered by EQTEC to futureproof their
operations. With the strength and track record of Idex alongside
EQTEC's disruptive technology, this Agreement and our growing
partnership represent joint leadership in the exciting and diverse
market for renewable energy in France. We believe this deepening
relationship will result in more plants in France in years to
come.
"In addition to positioning itself as an innovative, vertically
integrated, decarbonising energy company, Idex has been a
constructive and valuable partner to the Company and represents a
strong, future route to market for EQTEC technology as well as a
collaborator in deploying our Utility solutions and a well-known
name with the capability to develop, own and operate a portfolio of
plants with EQTEC technology ."
Benjamin Fremaux, Idex CEO, commented:
"Idex has a strong track record deploying waste-to-energy
infrastructure in France that contributes to French baseload energy
requirements.
"Idex is willing to grow its footprint in this domain and has
selected EQTEC technology to do so. We are delighted to cooperate
with EQTEC at both Limoges and now Grande-Combe, where EQTEC
technology enables Idex to propose attractive commercial terms,
paving the way for future developments to grow.
"Idex is today the only vertically integrated market operator
across the entire energy value chain. We engage in energy
production from local and carbon-free energy resources, energy
distribution through heating and cooling networks and up to energy
optimisation of its final use in industrial, residential and
tertiary buildings."
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
David Palumbo / Nauman Babar +44 20 3883 7009
Strand Hanson - Nomad & Financial
Adviser
James Harris / Richard Johnson +44 20 7409 3494
Panmure Gordon - Broker
John Prior / Hugh Rich +44 20 7886 2500
Instinctif - Media & investor EQTEC@instinctif.com
relations enquiries +44 791 717 8920 / +44 788
Guy Scarborough / Tim Field 788 4794
About the project
The project will see the replacement of core technology and
relevant ancillary equipment at an existing plant originally
developed by Group Bonnefoy at its stone quarry site located at
Villers-sous-Montrond, Doubs, France, near the Franco-Swiss border.
The existing gasification plant was designed using non-EQTEC
technologies but was never fully commissioned, as the previous
technology did not successfully complete performance and endurance
tests. As a result, the previous project company, SPV Synnov
Déchets SAS, entered bankruptcy in November 2021, after which the
Company was approached as a potential buyer.
The Company on 14 March 2021 announced its intention to acquire,
upgrade and recommission the 6.5 MWe plant, replacing the failed
gasification technology with EQTEC technology. On 07 September
2022, the acquisition was approved and finalised by France's
Ministère de l'Économie, des Finances et de l'Industrie (MINEFI).
It is the Company's intention that the France MDC process diverse
feedstock, with a combination of wood, contaminated wood and RDF
and is expected to be France's largest ever gasification project
for combined heat and power.
About Idex
Founded in France in 1963, Idex develops, designs, finances,
builds and operates local energy and carbon-free infrastructure,
which provides renewable heat and local electricity supply to
buildings, cities & industry.
With 5,700 employees and a turnover of EUR2 billion in 2022,
Idex is currently the only vertically integrated market operator
delivering the complete value chain for local energy provision. The
Group is involved in the production of thermal or electrical energy
from local and low-carbon energy resources (geothermal, solar,
biomass, waste), the distribution of this energy through district
heating and cooling networks, to its final use in industrial,
residential and tertiary buildings and other applications.
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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