EQTEC plc (AIM: EQT), the technology solution company for advanced gasification in waste to energy projects, is pleased to announce the signing of a Memorandum of Understanding (“MOU”), covering the key terms of the proposed cooperation for the engineering design and installation of the first advanced gasification plant in Greece.
· MOU covers EQTEC’s role as technology provider in the engineering design and installation of the first advanced gasification plant in Greece, partnering with regional EPC companies.
· Bank funding in place for the first 0.5MWe plant.
· The parties are also committing to the development of a second, 1MWe plant, elsewhere in Greece.
· EQTEC will shortly provide formal quotes for the full scope of its works and proceed to enter into a binding agreement in respect of the first 0.5MWe plant, which is expected to be finalised in the coming weeks.
EQTEC has entered into the MOU with German EPC company, ewerGy GmbH (“ewerGy”) (which will operate in Greece via its local partner, Eco Hellas SA), together with Greece based promoter and project developer, Agrigas Energy SA (“Agrigas”), which will own and operate the fully permitted 0.5MWe gasification installation in Larissa, in central Greece (the “Initial Plant”).
Under the MOU, it is intended that EQTEC will provide, inter alia, its gasification technology to the Initial Plant as nominated subcontractor to ewerGy. The feedstock for this plant will be densified straw, corn and cotton stalk residues, which can be sourced locally from farmers in the region. Commissioning of the Initial Plant is expected to take place during Q1 2021.
Under the MOU, subject to the performance of the Initial Plant, the parties have also committed to the development of a second 1MWe plant (together with the Initial Plant, the “Project”), owned by an affiliated party of Agrigas in another location in Greece, which is currently in the planning approval process.
Agrigas has agreed funding for the Initial Plant from a local bank in Greece. This local bank has utilised the services of TÜV Hellas as technical advisor to carry out due diligence on EQTEC’s technology. TÜV Hellas’ services will also be utilised as the project manager up to the commissioning stage of the Initial Plant.
In respect of the Initial Plant, the Company will shortly provide formal quotes for the full scope of its works to ewerGy. Once the budgets have been agreed, EQTEC and ewerGy will proceed to enter into a binding agreement(s) in respect of the Initial Plant, which is expected to be finalised in the coming weeks. Access to the local bank funding and progression of the Initial Plant is subject to such agreement(s) being signed. A further announcement will be made in due course, as and when appropriate.
EQTEC, ewerGy and ECO Hellas have full confidence that the successful closing of this first project will be followed by more projects currently in the pipeline of ewerGy and ECO Hellas.
David Palumbo, CEO of EQTEC, commented:
“We are delighted to have been chosen as the preferred partner for the first biomass project in Greece utilising advanced gasification technology. The Mediterranean agro-industry sector is one of our three main verticals, and entering Greece has been a high priority for us. During the discussions with ewerGy and Eco Hellas, we became convinced that we had found the right partners in this very promising region for our proven advanced gasification technology.
” The strong support in Greece for the Green Economy is driven by the absence of adequate Energy from Waste infrastructure and by the recently announced EU Green Deal Policy, of which the newly elected President of Greece, Mrs Katerina Sakellaropoulou, is a strong advocate. We remain confident of the opportunity that exists for the Group in Greece and the Greater Mediterranean area. Our intention is to develop this market through strategic partnerships in the relevant geographies.”
Georgios Paraskeopoulos, CEO of Agrigas, commented:
“We are pleased to announce this proposal for the construction of the first biomass project in Greece with advanced gasification technology. We are of the belief that through the technology expertise of EQTEC, and the competence and potential of Agrigas and ewerGy, we are in a position to take advantage of the great prospects that are opening up to the Greek energy market.
” This plant reflects Agrigas’ willingness to contribute substantially to the development of a new model of the utilisation of agricultural residues in Greece and in particular in the Thessaly region, which is Greece’s main agricultural region.”
Gerd Kromarck, CEO of ewerGy, commented:
“We are very confident that together with our partners, EQTEC and Agrigas, we will have an excellent first gasification plant in Greece, that will set a very high standard in the market. ewerGy is keen to expand its market position in the Balkans; we are locally present in the region in order to support our clients by the operation and maintenance.”
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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