Participation in the recommissioning of Italian waste-to-energy plant powered by EQTEC technology
MetalNRG Plc (Lon: MNRG) in partnership with EQTEC plc (AIM: EQT), a world leading gasification technology solutions company for sustainable waste-to-energy projects , is pleased to announce its participation in the acquisition and planned recommissioning of a 1MWe waste-to-energy plant in Italy. Originally commissioned in 2015, the plant was built around EQTEC’s proprietary and patented Advanced Gasification Technology.
MetalNRG will join a consortium led by EQTEC to repower, own and operate the biomass-to-energy plant (the “Plant”) in Castiglione d’Orcia, Tuscany, Italy. Once operational, it is intended that the plant will transform straw and forestry wood waste from local farms and forests into green electricity and heat for use in the local community.
· MetalNRG will join EQTEC, which will lead a consortium with two additional partners: an Irish Family Office and an Italian Family Office (together the “Parties”), which will participate in a Special Purpose Vehicle (“SPV”), designated EQTEC Italia MDCSrl;
· The Parties have signed a Heads of Terms Investment Agreement, (the “Agreement”) for the funding of the SPV, with financial close due imminently, subject to execution of the final form agreement by the Parties.
· MetalNRG will hold 26.66% equity in the SPV for an investment of Euro 700,000. The Plant is expected to generate an unlevered IRR of 20% and annual EBITDA in excess of Euro 750,000;
· The Plant is due to be fully recommissioned and operational by Q2 2022. Connection to Italy’s national grid is already in place and the Project will benefit from the country’s favourable tariffs for electricity produced from waste biomass until the end of 2027;
· The Plant is expected to produce 1MW green electricity from one tonne of straw pellets and wood chips annually and will be upgraded to process a greater diversity of biomass feedstocks over time;
· EQTEC will be the co-owner, operator and Advanced Gasification Technology supplier to the Plant and is contracted to be the O&M contractor for the Plant following its recommissioning; and
· The EPC contractor for the Project will be COS.M.I. Srl (“COSMI”), EQTEC’s Italian delivery partner and a company with successful experience in building EQTEC plants.
Rolf Gerritsen, CEO of MetalNRG commented:
“I am very pleased that MetalNRG will join EQTEC and two other partners to re-operationalise this biomass-to-energy plant in Italy, with this project demonstrating a strong start to our partnership with EQTEC. This is our first waste-to-energy project and I am extremely excited by the opportunity that this sustainable plant offers to investors, local businesses and the local community. I look forward to working with our partners to progress this initial project.”
Further information about the consortium:
As initially announced in March 2021, the Company can now provide an update on its Framework Partnership Agreement (FPA) with EQTEC, which is in place to develop biomass-to-energy, RDF-to-energy and sustainable, clean energy projects in the UK and Europe. T o support and finalise its involvement in the consortium and subsequent SPV for the Project in Italy, the intended share swap between EQTEC and MetalNRG is now being completed. MetalNRG will receive 27,932,961 new ordinary shares in EQTEC (“Ordinary Shares”) based on the market closing price of 1.79p per Ordinary Share on Friday 7th May 2021, while EQTEC will receive 60,606,061 MetalNRG shares at 0.0083p which was the market closing price on the same day.
The person who arranged for the release of this information is Rolf Gerritsen, the Company’s Chief Executive Officer.
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