Planning application approved for sustainable waste gasification and power plant at Billingham, UK
EQTEC plc (AIM: EQT), a world leading gasification technology solutions company for sustainable waste-to-energy projects, is pleased to announce that the proposed (up to) 25 MWe Billingham waste gasification and power plant (the “Project”) at Haverton Hill, Billingham, UK (the “Project Site”) has received a resolution from Stockton-on-Tees Borough Council to grant planning approval for an improved scheme. The scheme was proposed by the Company in order to reduce the environmental impact of the Project and improve its commercial outcome.
This announcement follows a number of updates made by the Company in respect of the Project. Most recently, as announced on 18 December 2020, the Company’s wholly owned subsidiary, Haverton WTV Limited (the “Buyer”), signed a Call Option and Exclusivity Agreement with Scott Bros. Enterprises Limited (“Scott Bros”). Scott Bros has granted the Buyer an exclusive call option (the “Option”) to require Scott Bros to enter into a binding conditional Land Purchase Agreement (the “LPA”) to sell the Project Site to the Buyer and the Option may be exercised any time up to 28 February 2021 (“Option Lapse Date”). Legal execution on the LPA is expected to be completed in this agreed timeframe.
David Palumbo, CEO of EQTEC, commented:
“We are delighted to start 2021 with the achievement of a significant milestone for the Project and Company, by securing planning approval on the Project Site for our revised scheme, and so soon after signing the Call Option and Exclusivity Agreement last December.
“EQTEC estimates that, with the application of our advanced gasification technology, this sustainable waste-to-energy Project will convert 200,000 tonnes of non-recyclable household and commercial waste each year into 25MWe of green electricity and 34MW of thermal heat production. This is waste that would otherwise be diverted to less economically and environmentally beneficial options such as landfill or incineration. The Project is expected to deliver jobs and environmental and economic improvements to the local area and attractive returns to our shareholders.
“We are pleased with the momentum of this Project, which we have now resourced with an experienced project delivery team. We remain focused on securing the optimal construction and operational structure for the Project, for the benefit of all our stakeholders .”
Further information about the Project
As previously announced by EQTEC, the Project at Billingham, UK, is part of a number of projects currently being reviewed by a European owner-operator of waste to energy infrastructure. It is expected that, following completion of a final credit review and requisite documentation, the European owner-operator will provide the financing required for the construction phases and then commercially operate the plants.
Assuming the requisite funding is provided, EQTEC expects to act as the co-developer on the Project, providing the design and core advance gasification technology and retaining a portion of the O&M contract.
EQTEC has already secured grid connection for the Project and completed technical due diligence with technology insurance providers. In addition, ongoing discussions with potential funders and co-developers are progressing well. The Project has existing planning permission for advanced thermal conversion (“ATC”) and EQTEC’s revised planning approval both improves the economics of the project and reduces the size of the footprint of the plant.
Once full commercial EPC offers are reviewed and negotiated to contract, a final decision will be reached with regards the funding structure for the Project, on which EQTEC will then provide an update to shareholders.
Existing EQTEC plants and waste to clean energy market opportunities
To date, four commercial plants have been built and are using EQTEC’s advanced gasification technology, which is proven and patented for sustainable waste-to-energy projects. The oldest such plant, built in 2011, has operated for over 125,000 independently audited engine hours, receiving highly commendable feedback from leading gas engine company Jenbacher relating to purity of the syngas, reliability and efficiency.
EQTEC’s technology and solutions can significantly improve both the economic and environmental impact of many waste-to-energy projects, with no harmful or toxic emissions. The technology has, in the Board’s view, the potential to become a new UK and global standard for many traditional waste-to-energy facilities to collaborate with, reducing reliance on increasingly less attractive waste elimination methods such as traditional incineration and delivering new resilient and locally based clean energy infrastructure across the UK and internationally.
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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