We talk with David Palumbo, CEO of EQTEC plc, which has a proprietary gasification technology used in industrial size power plants to convert waste into synthetic gas to generate electricity and heat.
We get to learn a bit more about the CEO’s background and understand how the technology works. David also talks about the company roadmap for Q1 and Q2 for 2020.
EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, is pleased to announce the following update on its corporate and operational activities.
Subsequent to the change in Group leadership with the appointment of David Palumbo as the Company’s Chief Executive Officer, announced on 16 September 2019, the Company has continued its focus on three key verticals and further developed its strategy to execute in these verticals, being:
Recovery of clean energy from biomass
· Focused on biomass energy with projects in the 2.5 to 5MW size range, particularly in the USA and Europe.
Elimination of waste streams in agri-food and industrial sectors
· Focused on energy recovery, typically in the 2 to 10MW project size range, particularly in the Mediterranean area.
Elimination of Municipal Solid Waste (“MSW”) and Refuse Derived Fuel (“RDF”) waste streams
· Focused on projects typically in the 5 to 25MW range, particularly in the UK and Ireland.
This emphasis on these key verticals is the result of the Company, under its change of leadership, further refining its business model to focus on becoming a progressive technology partner. The Company is creating, what the Directors believe to be, a unique ecosystem in its industry, whereby EQTEC is establishing a close group of strategic partners to work with, which spans operators and developers, through to contractors and capital providers.
During Q4 2019 and in Q1 2020 to date, the Directors believe the Group has made significant progress with regard to its refined strategy, as highlighted below:
Q4 2019 Highlights
· Completed c.€155,000 Transports Metropolitans de Barcelona (“TMB”) maintenance contract and increased proactive business development activities in this area, leading to a developing pipeline of potential new business for the Group, including with regard to further upgrade and maintenance contracts in Spain.
· Agreed an extension for the Billingham Energy Project MOU, covering the proposed 25MW waste gasification and power plant, and opened discussions with potential co-developers and funders. EQTEC has instructed Northern Power to carry out the work to provide a full quotation for the grid connection and this work is expected to be completed within 45 days.
· Hired a new business development executive in Spain, who is focusing primarily on the agri-food and industrial sectors in the Mediterranean.
· Exclusivity Agreement signed for the proposed 1.18MW Biomasse 31 Project in France.
· Equity raise of £958,500, before costs, completed in December 2019, together with the issue of ordinary shares to certain service providers at an agreed price of twice the equity subscription price, thereby strengthening the balance sheet.
· Reached Financial Close on the 2MW North Fork Project and received a first payment of €880,000.
Q1 2020 Highlights to date
· Completed the sale of certain equipment to Movialsa for €300,000, which has been received, and agreed a collaboration to use its 6MW plant in Spain as a showcase for EQTEC’s proprietary technology.
· Approval for RDF testing at the University of Lorraine plant in France. Discussions ongoing with a number of stakeholders to create a consortium to carry out a testing programme of UK RDF at the plant.
· Advanced discussions with Phoenix Biomass Energy Inc (“Phoenix”) to develop and strengthen the Group’s collaboration with Phoenix, both from an operational and business development perspective.
· North Fork Project design package for tender is nearly complete by EQTEC’s engineering team and a project kick-off meeting in the USA with the EPC, Jenbacher and Phoenix has been scheduled for the week commencing 10 February 2020.
In addition, the Group is advancing discussions with regard to a number of ongoing business development initiatives, including:
· Potential entry into the market in Greece via (i) a strategic partnership for EPC, O&M and business development; and (ii) exclusivity with a developer who has an existing pipeline in the agricultural waste sector.
· Project partnerships with potential investors in the USA.
· Collaborations with developers in the UK and Ireland in relation to RDF, anaerobic digestion and waste gasification projects.
· Collaboration with a large owner and operator of biomass energy, district heating and energy from waste infrastructure, to develop a portfolio of projects together.
David Palumbo, CEO of EQTEC, commented:
“Since being appointed as CEO in September 2019 I am very pleased with the progress that EQTEC has made. As we move forward in 2020, we will focus on executing our strategy with special emphasis in seeking strategic partnerships to develop a portfolio approach inside our core markets. We are already in advanced discussions with a number of potential partners that could bring not only projects, but also local capabilities. I believe EQTEC is now well positioned to execute on its clearly defined strategy and I look forward to providing further updates as our projects progress and we enter into new ones.”
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.
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