TIDMEQT
RNS Number : 5645J
EQTEC PLC
17 August 2023
17 August 2023
EQTEC plc
("EQTEC", the "Company" or the "Group")
Contract signed with Idex for Front End Engineering Design at
France MDC
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, through its subsidiary
EQTEC Iberia SLU, it has signed with French infrastructure owner
and utility company Idex Services ("Idex") a contract for the Front
End Engineering Design (the "FEED") (the "FEED Contract" or
"Agreement") at the Company's France Market Development Centre
("France MDC").
Under the FEED Contract, the Company has agreed its scope of
services and an execution plan to support all design work up to
financial close. The work outlined in the FEED Contract is expected
to start immediately and be completed by December 2023. The Company
expects to receive c. EUR440,000 for the full scope of FEED
work.
The FEED will provide owner-operator Idex with all technical
information essential to achievement of Final Investment Decision
("FID") toward retrofit and construction at the France MDC. The
Company and Idex are targeting FID in Q1 2024.
Assuming FID based on the current configuration, EQTEC will be
the core technology supplier for France MDC, receiving fees for
engineering services, equipment, commissioning and licensing over
the period Q4 2023 - Q1 2025, estimated to total c. EUR15
million.
Highlights
The scope of the FEED includes:
-- Validation of the end-to-end process defined during the
preliminary technical assessment in 2022;
-- Detailed analysis of the issues identified with the
predecessor plant and confirmation of EQTEC proprietary technology
solutions for implementation during retrofit and construction;
-- Confirmation of the plant layout within previously defined site parameters;
-- Request for offers and clarifications from suppliers for
ancillary equipment to be replaced or renovated;
-- Supply of all plans and documents essential to the FEED;
-- Supply of technical specifications for equipment to be ordered and supplied;
-- Provision of a detailed cost estimate for equipment and services;
-- Identification of construction risks and proposal of mitigations;
-- Establishment of a preliminary construction schedule for the project.
The Agreement follows the Company's announcement on 12 July 2023
that Idex had acquired 95% of the share capital of Grande-Combe SAS
("Grande-Combe"), the project company for the France MDC, together
with the project to construct and commission it.
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 its core
capabilities of technology development and engineering.
David Palumbo, EQTEC CEO, commented:
" We are pleased to be working with Idex on this second project
together, which is of particular importance to us as our France
MDC. We appreciate the impetus Idex has shown through its agreement
of an ambitious schedule toward completion of design and
progression toward construction start by early 2024. This third MDC
for EQTEC and second project in partnership with Idex together
indicate growing demand from innovative, blue-chip partners and
funders to build and operate new energy infrastructure powered by
EQTEC to futureproof their operations ."
Stephane Guillet, Idex Director of New Energy Vectors,
commented:
"We are looking forward to completing all the engineering and
developing work required at Grand-Combe by year end so that we may
progress to procurement and construction early in 2024. Our team is
very familiar with the project's potential and the local market
dynamics, and we believe with our expertise and resources we will
be able to operate another successful plant that will be a
reference for this type of new energy infrastructure in France.
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, where EQTEC technology enables Idex to propose
attractive commercial terms to our customers, 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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