TIDMEQT
RNS Number : 1409O
EQTEC PLC
28 May 2020
28 May 2020
EQTEC plc
("EQTEC", the "Company" or the "Group")
Projects and Commercial Update
EQTEC plc (AIM: EQT), the technology solution company for waste
gasification to energy projects, is pleased to announce the
following update on its projects and commercial activities.
United Kingdom
Billingham:
-- Work for full detailed quote for the grid connection has been
completed by grid operator, Northern Powergrid, and the quote has
been received and accepted by EQTEC. The requisite assessment and
design fees have been paid to Northern Powergrid.
-- Non-binding project finance term sheet received for the
project, which has been signed by EQTEC and is being assessed by a
consortium of potential equity investors. The funding structure set
out in the term sheet comprises both senior debt and mezzanine
tranches and requires an equity contribution from the consortium of
developers of, in aggregate, 10% of the total project CAPEX,
currently estimated at c. GBP170 million.
-- Following detailed technical due diligence on EQTEC's
advanced gasification technology, an offer for a Technology
Warranty Insurance Policy was offered by an international
underwriter of speciality insurance products for the project. The
nature of cover offered and the level of insurance premium is
considered by EQTEC to be in-line with expectations and it is to be
offered to the funders and the EPC contractor as part of the
project structure.
United States of America
North Fork:
-- Detailed engineering plan completed and delivered by EQTEC,
in April 2020, to the EPC contractor and Phoenix as planned and the
second payment milestone invoice of EUR770,000 was received by the
Company in May 2020.
-- Preparation work commenced in-line with the project
programme, including the requirement to have the equipment located
at the Group's Newry site in Ireland being shipped to the US by no
later than August 2020.
NAPA:
-- Full planning permit for the new location (initially to
accommodate a larger 2MWe capacity power plant) is still under
process with some delays attributable to COVID-19.
-- The client is now evaluating the option of a larger
installation and requested a full quote for an increased 3MWe
plant. This was completed and provided by EQTEC.
Europe
Agrigas:
-- Full project technical due diligence report completed by TUV
Hellas, the nominated engineer of the local Greek bank (the "Bank")
offering the project finance, which has now been presented to the
Bank.
-- Project third party financial due diligence requested by the
Bank, which was carried out by EY Greece, has also been completed
and provided to the Bank.
-- The Bank's credit committee meeting for project final
approval was rescheduled to first week of June 2020, due to the
Bank prioritising COVID-19 related loans in Greece, with a response
expected during June.
ewerGy/ECO Hellas Pipeline:
-- 13 potential new projects in the Balkan region have passed
the initial due diligence phase and, accordingly, now fall under
the scope of the framework agreement (announced on 16 March 2020),
including exclusivity.
Commercial:
-- 10 new commercial enquiries have been received by the Company
in Q1/early Q2 2020 and full detailed commercial offers, with an
aggregate potential sales value of c.EUR120 million, were made by
the Company during that period.
-- EQTEC has progressed discussions with a European
Infrastructure Operator of district heating and waste to energy
and, together, the parties have selected three potential projects
for financial due diligence, which has already commenced. Once
completed, the intention is to develop the projects together under
a new framework collaboration agreement.
David Palumbo, CEO of EQTEC, commented :
"I am pleased with the ongoing progress that EQTEC has made
during this challenging time. As we approach H2 2020, we continue
to focus on executing our strategy with special emphasis in seeking
strategic partnerships to enhance our portfolio opportunities. We
are already experiencing an increase in the number of large
operators that are engaging in conversations with us regarding
collaboration opportunities. We believe the coronavirus pandemic
may influence the pace and nature of climate action positively and
we will be ready to seize inspiring and fruitful new partnerships
to apply our solutions."
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 +353 21 2409 056
David Palumbo / Gerry Madden
Strand Hanson - Nomad & Financial Adviser +44 20 7409 3494
James Harris / James Dance / Jack Botros
SI Capital Limited - Broker +44 1483 413 500
Nick Emerson / Jon Levinson
IFC Advisory - Financial PR & IR +44 20 3934 6630
Tim Metcalfe / Graham Herring / Zach
Cohen
Notes to Editors
About EQTEC plc
EQTEC is a technology partner with proven proprietary patented
technology for waste-to-value applications.
EQTEC designs and supply advanced gasification solutions and has
a higher efficiency product offering that it is modular and
scalable from 2MW to 30MW. Of particular importance is the
versatility to process over 50 different types of feedstock,
including municipal waste, agricultural waste, biomass and
plastics. Our solutions produce a uniquely pure high-quality
synthesis gas (syngas), so that is capable of being used for the
widest applications in energy and biofuels.
Proprietary technology design, deployment and maintenance
capabilities, mitigate the risks when using 3rd party equipment.
Technology Integration capabilities enable to lead collaborative
ecosystems to build sustainable, waste elimination and green energy
infrastructure.
The Company is quoted on AIM, bears the Green Economy Mark
awarded by the London Stock Exchange and trades as EQT. Further
information on the Company can be found at www.eqtecplc.com .
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END
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