EQTEC plc (AIM: EQT), the technology solution company for biomass gasification-to-energy projects, is pleased to announce that it has signed its first equipment purchase contract with Phoenix Energy (“Phoenix”), in relation to the Company’s first power plant in California, USA.
The Company previously announced on 24 September 2018 that it had signed a Memorandum of Understanding (“MOU”) with Phoenix, a California based power company, to supply its proprietary EQTEC Gasifier Technology (“EGT”) for two power plants in California, USA, expected to be valued in the region of EUR10 million.
Converting the MOU into a first formal contract with Phoenix represents a significant milestone for EQTEC and management expect this first contract to start generating revenue during H12019, continuing through H22019 and 2020.
Phoenix will be the first customer in the USA to utilise EQTEC’s gasification-to-energy technology and the Company expects that this will lead to further opportunities throughout the USA market.
Gregory Stangl, CEO of Phoenix Energy, stated: “We are delighted to be taking our relationship with EQTEC forward and believe this solution could have a wide application for US Distributed Energy market.”
Ian Price, CEO of EQTEC plc, commented: “This is a landmark deal for EQTEC which highlights the global reach of our technology.
“As part of EQTEC’s previously announced strategic review and Growth Optimisation Plan, our goal is to successfully execute contracts from our current pipeline of projects. This contract represents the first contract signed as part of this plan and the Company will continue to focus on executing opportunities in its project pipeline, including the contract for Phoenix’s second power plant, in the near term.
“As I have previously stated, EQTEC’s expanding portfolio of projects continues to present significant near-term revenue generating opportunities for the Company. Our aim is to grow EQTEC into a market leading FTSE listed company. We look forward to providing shareholders with further updates in the near term on the Company’s pipeline of projects, which includes opportunities with values ranging from EUR10m to EUR100m.”
Yoel Alemán, CTO of EQTEC plc, commented: “The signing of this contract with Phoenix proves that our patented technology is among the best in its class and we look forward to working alongside Phoenix and other partners in executing further contracts worldwide. The US market is of particular interest to EQTEC given its size and potential.”
Particulars of the contract
· EQTEC will provide its biomass gasification-to-energy technology and equipment to Phoenix Energy;
· EQTEC will initially deliver the engineering design for Phoenix’s first power plant within the next two months;
· Phoenix Energy and its client will then review the engineering design in order to determine the equipment order for the first power plant;
· Phoenix is making good progress with the permits, licences and authorisations (“PLA”), Power Purchase Agreements (“PPA”) and Feedstock Agreements for the project and they are anticipated to be in place before the completion of the engineering design work
· Work on the project is expected to commence immediately.
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