EQTEC PLC Contract with Phoenix Energy (1306N)
15 January 2019 - 8:19PM
UK Regulatory
TIDMEQT
RNS Number : 1306N
EQTEC PLC
15 January 2019
15 January 2019
EQTEC plc
("EQTEC" or the "Company")
Contract with Phoenix Energy
EQTEC plc (AIM: EQT), the technology solution company for
biomass gasification-to-energy projects, is pleased to announce
that it has signed its first equipment purchase contract with
Phoenix Energy ("Phoenix"), in relation to the Company's first
power plant in California, USA.
The Company previously announced on 24 September 2018 that it
had signed a Memorandum of Understanding ("MOU") with Phoenix, a
California based power company, to supply its proprietary EQTEC
Gasifier Technology ("EGT") for two power plants in California,
USA, expected to be valued in the region of EUR10 million.
Converting the MOU into a first formal contract with Phoenix
represents a significant milestone for EQTEC and management expect
this first contract to start generating revenue during H12019,
continuing through H22019 and 2020.
Phoenix will be the first customer in the USA to utilise EQTEC's
gasification-to-energy technology and the Company expects that this
will lead to further opportunities throughout the USA market.
Gregory Stangl, CEO of Phoenix Energy, stated: "We are delighted
to be taking our relationship with EQTEC forward and believe this
solution could have a wide application for US Distributed Energy
market."
Ian Price, CEO of EQTEC plc, commented: "This is a landmark deal
for EQTEC which highlights the global reach of our technology.
"As part of EQTEC's previously announced strategic review and
Growth Optimisation Plan, our goal is to successfully execute
contracts from our current pipeline of projects. This contract
represents the first contract signed as part of this plan and the
Company will continue to focus on executing opportunities in its
project pipeline, including the contract for Phoenix's second power
plant, in the near term.
"As I have previously stated, EQTEC's expanding portfolio of
projects continues to present significant near-term revenue
generating opportunities for the Company. Our aim is to grow EQTEC
into a market leading FTSE listed company. We look forward to
providing shareholders with further updates in the near term on the
Company's pipeline of projects, which includes opportunities with
values ranging from EUR10m to EUR100m."
Yoel Alemán, CTO of EQTEC plc, commented: "The signing of this
contract with Phoenix proves that our patented technology is among
the best in its class and we look forward to working alongside
Phoenix and other partners in executing further contracts
worldwide. The US market is of particular interest to EQTEC given
its size and potential."
Particulars of the contract
-- EQTEC will provide its biomass gasification-to-energy
technology and equipment to Phoenix Energy;
-- EQTEC will initially deliver the engineering design for
Phoenix's first power plant within the next two months;
-- Phoenix Energy and its client will then review the
engineering design in order to determine the equipment order for
the first power plant;
-- Phoenix is making good progress with the permits, licences
and authorisations ("PLA"), Power Purchase Agreements ("PPA") and
Feedstock Agreements for the project and they are anticipated to be
in place before the completion of the engineering design work;
and
-- Work on the project is expected to commence immediately.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Enquiries
EQTEC plc +353 (0)21 2409 056
Ian Price - Chief Executive Officer
Gerry Madden - Finance Director
Northland Capital Partners Limited - Nomad
and Broker +44 (0)20 3861 6625
David Hignell / Dugald J. Carlean
Luther Pendragon - Financial PR +44 (0)20 7618 9100
Harry Chathli / Alexis Gore / Joe Quinlan
Notes to Editors
About EQTEC plc
EQTEC's business model involves sourcing and providing
assistance in developing waste elimination projects to which it
will ultimately sell its EQTEC Gasifier Technology ("EGT") and
O&M services. EGT enables project developers to construct waste
elimination plants and recover electrical and thermal energy from
the waste streams.
EQTEC sources projects that have a local supply of waste in need
of elimination and conversion. It builds relationships and brings
together the developers, the waste owners, the building contractors
and funders. It then supplies the energy recovery technology and
provides engineering services to the projects. Furthermore, EQTEC
will provide O&M services to the operating projects generating
recurring revenues over the life of the projects.
The Company is quoted on AIM and trades as EQT. Further
information on the Company can be found at www.eqtecplc.com
About Phoenix Energy
Phoenix Energy is a USA based private label power company that
builds, owns and operates on-site biomass gasification plants in
partnership with businesses in the Agricultural and Forestry
industries. Phoenix Energy helps its partners become their own
energy provider, selling energy at retail rates. Phoenix Energy is
first and foremost a distributed generation ("DG") power company
that sells KW over iron. They combine proven technologies to
provide themselves, their partners, and their customers with
profitable on-site power.
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END
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