MetalNRG plc (“MetalNRG or the “Company”) is pleased to provide an update on its investment in the EQTEC Italia’s waste-to-energy plant (the “Plant”) being recommissioned in Gallina, near Castiglione d’Orcia in Tuscany, Italy.
The project to recommission the Plant remains on track, with the commercial operations date (“COD”) scheduled, as previously announced for the final quarter of 2022, specifically December 2022. The Company has been informed by its partner, EQTEC, that staff has been hired and are on site supported by EQTEC’s operations and maintenance team to train the local team and ramp up operations. EQTEC expects to take delivery of the last, critical, ancillary equipment this week, with mechanical and electrical completion of the Plant completed by the end of November 2022.
The Plant will be the first project under the Collaboration Agreement with EQTEC and will showcase the potential of the Joint Venture going forward and the role of each party, with MetalNRG taking the role of developer and EQTEC as technology partner and licensor. The Plant is expected to be a successful investment with sustainable profitability and rate of return.
Throughout the recommissioning of the Plant, EQTEC has worked to identify ways of making the business model of the Plant more resilient to the changing economic conditions. As a result, EQTEC has identified a number of specific enhancements to the Plant, which will enable the Plant to produce biochar as a by-product, thus offering additional revenues. There is a growing market for biochar in Italy specifically and in Europe generally. The Plant will also benefit from an additional feeding in system so that it can accommodate both low density and high density feedstocks, to accommodate for a broader range commercial options. These additional features along with the add-on of a dryer and thermal oxidizer will make the Plant more self-sufficient commercially whilst reducing operating expenses.
The funds for the additional features required further investment of Euro 1.45 million in which MetalNRG did not participate. EQTEC Italia MDC srl (the “SPV” ) raised the funds through a combination of shareholder loans and equity with some of the existing investors; this has resulted in a dilution of MetalNRG’s economic interest in the project to 15.88%. The updated financial model approved by the Board of Directors and shareholders of Italia MDC currently forecasts revenues of c. €2.6 million and EBITDA of c. €1.0 million per year through to the end of 2027.
Rolf Gerritsen commented “I am delighted with the progress made by EQTEC on recommissioning the Plant in Italy and look forward to working with the team going forward. The Business model is more robust now that additional features have been added and securing the revenues from the biochar by-product will enhance revenues going forward.”
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