EQTEC plc (AIM: EQT), a world-leading gasification solutions company that is building a cleaner waste-to-energy industry, is pleased to announce the completed acquisition of a 1.2 MWe waste-to-energy gasification plant in Karlovac, Croatia (the “Plant”), through Synergy Projects d.o.o. (“Synergy Projects”), a joint venture (the “JV”) between the Company and its Croatian project development partner Sense ESCO d.o.o. (“Sense ESCO”).
Located in the Industrial Zone, Korana in Karlovac, the site contains a decommissioned plant which originally employed an early gasification technology from a third party. The plant was not able to achieve the designed operational availability and had to be closed. The Company’s intention is to redesign and reconfigure the Plant to incorporate the patented, proprietary EQTEC Advanced Gasification Technology at the centre. When subsequently commissioned, it will transform locally sourced wood chips and forestry wood waste from regional forests into green electricity for use by the local community.
This acquisition is in line with the Company’s strategy to recover decommissioned gasification plants employing other technologies, in order to further establish it as the dominant and reliable technology partner by increasing the number of operating plants employing EQTEC Advanced Gasification Technology in the near term. It follows the acquisition of a 1.2 MWe waste-to-energy plant in Beliše, Croatia, announced on 11 August 2021.
· Synergy Projects Joint Venture has now acquired the biomass-to-energy plant in Karlovac, Croatia;
· The JV has signed a Property Purchase and Transfer Agreement (the “Agreement”) for the acquisition and funding of the project via a Special Purpose Vehicle (“SPV”) to acquire the land and assets of the Plant for an aggregate consideration of €1,200,000;
· The acquisition of the plant by the JV was funded by the Company via a €1,200,000 loan that is intended to be converted into privately placed bonds to meet local corporate requirements;
· The JV currently is 100% owned by the Company, with 20% equity to be transferred to Sense ESCO in the near term and an additional 20% subject to performance milestones;
· Active discussions with investors are currently underway, toward financial close in the coming months;
· The Company estimates that the Plant will generate an unlevered IRR of 12% and annual EBITDA in excess of €700,000;
· The contract sales value to EQTEC for the Plant is expected to be c.€4.5 million in technology and engineering. The contract is expected to be paid in instalments, starting at financial close and continuing throughout the construction and commissioning period, which is anticipated to be 12 months;
· The Plant is expected to produce approximately 1.2MW green electricity from c.7,500 tonnes of locally sourced wood chips and forestry waste biomass per year from regional forests ;
· The Plant has all licenses, permits and a grid connection and a power purchase agreement (“PPA”) is already in place. The site has further 2MW of grid availability and the Company plans to apply for additional PPA to further expand the Plant;
· The Plant will also produce high quality biochar to supply the growing demand of this commodity in Europe;
· In addition to being Advanced Gasification Technology supplier to the Plant, EQTEC is to be contracted as the O&M contractor after commissioning;
· The EPC contractor for the Project will be COS.M.I. S.r.l. (“COSMI”), a company with successful experience in building EQTEC plants;
· The Plant is expected to be updated, recommissioned and repowered for operations towards the end of 2022; and
· Once the optimal financing structure is secured for the Plant, the Company will make further announcements
David Palumbo, CEO of EQTEC, commented:
“I am very pleased to announce the acquisition of a second sustainable waste-to-energy plant in Croatia, after very recently acquiring a similar plant in Beliše, which we will recommission and operate as the country’s EQTEC Market Development Centre. In partnership with the Sense ESCO team, our Croatian Joint Venture is focused on reducing the amount of forestry waste wood biomass in the local areas in which these two projects will operate, leveraging our Advanced Gasification Technology, with the low emissions profile and high operating efficiency it offers, to generate clean energy and in locations where it is also beneficial, increasing valuable high-quality biochar.”
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.
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.
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