TIDMEQT
RNS Number : 1787T
EQTEC PLC
13 November 2019
13 November 2019
EQTEC plc
("EQTEC", the "Company" or the "Group")
Agreement for the Development of Biomasse 31
EQTEC plc (AIM: EQT), the technology solution company for waste
gasification to energy projects, today announces that, via its
wholly owned subsidiary, EQTEC Iberia SLU ("Iberia"), it has
entered into an agreement (the "Agreement") for the development of
a proposed 1.18 MW net biomass gasification power plant project
(the "Project") in Gratens, France.
The Agreement entered into is between Iberia, Biomasse 31, which
is the existing Project SPV, and the Barthe family (together, the
"Parties"), owners of Biomasse 31.
Pursuant to the Agreement, the Parties will work towards
definitive legal documents pursuant to which the Parties and the
funders introduced by each party will, inter alia, invest in the
SPV in order to achieve financial close of the Project. The nature
and quantum of such investment, and the share of such funding
between the Parties, is yet to be determined. It is intended that
EQTEC will have the option, but not the obligation, to invest
equity capital into the SPV.
Key provisions of the Agreement
The Agreement reflects the key terms required to enable the
completion of the necessary project engineering, project management
and project documentation needed for final legal documentation
relating to the Project, which includes the following:
-- The Project is proposed to comprise a 1.18 MW net integrated
biomass gasification power plant in Gratens, France;
-- EQTEC to provide its gasification technology for the Project
with a fixed cost EPC solution;
-- Iberia will act as project manager and provide technology,
equipment and services, including development services. The
Company estimates that the value of its proposed technology,
equipment and services contract would be c.EUR5.5 million and
a full detailed commercial offer, on this basis, has been prepared
for the Project;
-- Iberia to incur costs of up to EUR100,000 before financial
close for the provision of the engineering services required
to obtain the requisite permitting to reach financial close,
which is proposed to be repaid to Iberia on financial close
at a 2x multiple;
-- Biomasse 31 to be responsible for all Project permitting and
licensing. Application for certain licences and permits need
to be finalised before construction can commence; and
-- Iberia has exclusivity to develop the Project up to 31 December
2020, which the Parties consider to be the expected long stop
deadline necessary to obtain all the required permits to achieve
financial close and commence construction. The Parties can
mutually agree to extend the exclusivity period.
The Parties are progressing the requisite workstreams required
to enter into final legal documentation and further announcements
will be made in due course. Representatives of the Company have met
with potential third-party funders for the Project and a number of
pre-planning meetings have been carried out with the relevant
authorities, with a number confirming in writing their support for
the Project.
David Palumbo, CEO of EQTEC, commented:
"It is very encouraging to sign our first agreement for a
commercial project in France, with a partner so embedded in the
local community and so committed to developing energy transition
infrastructure throughout the country. We have been in discussions
with the Barthe family since the beginning of the year and we are
delighted that the they have been strong advocates of our
technology. In our view, France has always been a market where
innovation and creative solutions in clean energy are given full
support both from the public and private sectors. Our technology
has been positively reviewed by French entities, such as the
National Alliance for Coordination of Research for Energy (ANCRE),
and has obtained endorsements from the team of academics running
the Research Pilot Plant built by EQTEC in Lorraine University. We
strongly believe that our potential market in France is only
starting to open up and the Project, combined with our presence at
Lorraine, can act as the foundation for growth and development in
the region."
Mr Pierre-Olivier Barthe, CEO of Biomass 31, commented:
"We are very excited to have entered into this agreement with
EQTEC for the development of this project, which is so important
for us and the local community. We have been working on this for a
number of years without being able to find a reliable and
professional technology partner until now. The depth of technical
understanding and capabilities of EQTEC's technical team is, in our
view, unmatched in the sector as per the excellent references that
were given to us. Now having experienced working with them, we have
no doubt that we will make a success out of this project, which we
believe is the first of its type in France."
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 (0)21 2409 056
David Palumbo / Gerry Madden
Strand Hanson - Nomad & Financial Adviser +44 (0) 20 7409 3494
James Harris / James Dance / Jack Botros
SI Capital Limited - Broker +44 (0)1483 413 500
Nick Emerson / Jon Levinson
IFC Advisory - Financial PR & IR +44 (0) 20 3934 6630
Tim Metcalfe / Graham Herring / Zach
Cohen
Notes to Editors
About EQTEC plc
EQTEC is the technological solution partner for converting waste
to clean energy.
EQTEC mission is to provides sustainable technological solutions
to address two of the world's greatest challenges: managing rising
levels of waste and meeting the growing demand for clean
energy.
EQTEC's business model involves sourcing and providing
assistance in developing waste elimination projects which will
convert waste into clean energy, 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.
EQTEC also seeks to provide Operation & Maintenance services
to established operating co-generation plants 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.
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END
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