EQTEC PLC (EQT.L) Croatia Joint Venture update

Beliše Project Financial Close and Karlovac Project first phase funding secured

EQTEC plc (AIM: EQT), a world-leading gasification solutions company building the future of a cleaner waste-to-energy industry, is pleased to announce that financial close has been achieved for the Beliše Project (“Beliše”) and first phase funding for a second project in Karlovač (“Karlovač”) has been secured. Both projects are being developed by Synergy Projects d.o.o. (“Synergy Projects”) the Company’s Croatian joint venture with local project development partner Sense ESCO d.o.o. (“Sense ESCO”).


· Sense ESCO has subscribed for additional shares in each of the Beliše and KarlovačProject SPVs which has resulted in it owning 51% of the equity in the respective SPVs. Synergy Projects has retained 49% equity in both Project SPVs;

· The projects are being funded through a mix of equity, debt and privately placed tradeable bonds;

· The funding requirement for Beliše recommissioning is c. € 4.2m of which Sense ESCO will be providing €1.7m while EQTEC will provide the balance, in addition to the €550,000 loan previously provided;

· The total funding requirement for Karlovač is forecast to be in the region of €10m. EQTEC and Sense ESCO will initially be providing 25% of the required funding through subscriptions to privately placed tradeable bonds and equity while third party investors and bank debt will be sought to fund the balance;

· Full funding required for the technology upgrades and subsequent re-commissioning at the Beliše plant has been secured, in order to upgrade the design and an increase in capacity to 1.5MWe from the original 1.2MWe;

· The Company has completed full detailed engineering for the Beliše plant, all main components have been ordered and are expected to be on site during Q4 2021 and Q1 2022;

· The Karlovač plant will be developed in two phases of 1.5MWe each, to take advantage of the existing infrastructure, grid connection and Power Purchase Agreement;

· Partial funding for the first phase at Karlovač has been secured in order to accelerate completion of the detailed engineering design and order main equipment;

· The technology sales for EQTEC over the life of project is €2.0m for Beliše, of which c.80% is expected to be invoiced by EQTEC in the current financial year, and €7.5m for Karlovac, of which c.20% is forecast to be invoiced in the current financial year, in each case subject to achievement of certain milestones; and

· The Company and Sense ESCO are continuing discussions with investors and banks to secure additional debt and equity to fund Karlova c’s current and future phases. Furthermore, discussions are underway to sell equity and or tradeable bonds in the projects either during construction or after achieving successful commercial operation in line with EQTEC’s general business strategy.

David Palumbo, CEO of EQTEC, commented:

“We are very pleased to complete financial close at Beliše, our Market Development Centre in Croatia and also confirm first phase funding for the Karlovac project in collaboration with our Croatian joint venture partner, Sense ESCO. Both of these projects are designed to provide a community cooperative model to local stakeholders, taking responsibly managed waste from each plant’s surrounding areas and turning it into clean energy. We are applying project delivery focus and technical innovation towards commissioning these projects and delivering value to the local communities in 2022.”

More information about Beliše and Karlovač projects

The project at Beliše was originally commissioned in 2016 and the plant was built around EQTEC’s proprietary and patented Advanced Gasification Technology. The 1.2MWe plant will be recommissioned, upgraded to 1.5MWe and repowered to convert forestry wood waste from local farms and forests into green electricity and heat for use in the local community. It will also operate as an EQTEC Market Development Centre, where the Company will demonstrate EQTEC’s technology in a fully operational, commercial environment.

The project in Karlova c sits on a site that contains a decommissioned plant which originally employed an early gasification technology from a third party. When redesigned, reconfigured and commissioned, the 3.0MWe plant will transform locally sourced wood chips and forestry wood waste from regional forests into green electricity for use by the local community and also produce high quality biochar to supply the growing demand of this commodity in Europe.

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.



+44 203 883 7009

David Palumbo / N auman Baba

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