Billingham Project Land Purchase Agreement

RNS Number : 4285Q

EQTEC PLC

26 February 2021

 

26 February 2021

EQTEC plc

("EQTEC", the "Company" or the "Group")

Billingham Land Purchase Agreement

EQTEC plc (AIM: EQT ), a world leading gasification technology solutions company for sustainable waste-to-energy projects , is pleased to announce that, further to the Company's announcement of 18 December 2020, Haverton WTV Limited (the "Buyer", which is a wholly owned subsidiary of EQTEC) and Scott Bros. Enterprises Limited ("Scott Bros") have signed a conditional Land Purchase Agreement ( the "LPA") relating to the land on which the proposed up to 25 MWe Billingham waste gasification and power plant ( the "Project") at Haverton Hill, Billingham, UK, will be constructed (the "Project Site").

David Palumbo, CEO of EQTEC, commented:

"I am very pleased with the progress of the Billingham Project, which now has an experienced project delivery team in place. We are assembling the optimal construction resources and delivery model for the Project. The acquisition of the Project Site means we remain on track to deliver the UK's first sustainable waste-to-energy plant using EQTEC's leading advanced gasification technology and solutions.

"Billingham is estimated to convert 200,000 tonnes of non-recyclable household and commercial waste each year into 25MW of green electricity and 34MW of heat production. The Project is expected to create jobs and deliver environmental and economic improvements to the local community as well as, we believe, attractive returns for our shareholders ."

Key terms of the LPA

· The consideration for the purchase of the Project Site is £8,600,000. A deposit amount of £260,000, from which the existing exclusivity payment of £100,000 will be deducted, is payable immediately. The balance of £8,340,000 is payable at completion of the land purchase, which must occur on or before a date 12 months from the date of signing of the LPA (the " Longstop Date " ).

· The LPA is conditional on the satisfaction or waiver by the Buyer of certain conditions precedent on or before the Longstop Date, relating to the development and financing of the Project, including that the Buyer has reached financial close in respect of such financing, the Buyer having agreed the form of the key construction, operational, offtake and feedstock contracts, and the Project being fully permitted by the relevant planning and environmental authorities.

Further information about the Project

This announcement follows a number of updates made by the Company in respect of the Project, most recently, as announced on 27 January 2021, when a resolution was received 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.

The Project at Billingham, UK, is part of a number of projects being reviewed by a European owner-operator of waste-to-energy infrastructure. It is currently 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 a grid connection offer 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 and EQTEC's revised planning approval both improves the economics of the Project and reduces the size of the footprint of the plant.

Following full commercial EPC offers being reviewed and negotiated to contract, a final decision will be made with regards to the funding structure for the Project, on which EQTEC will then provide an update to shareholders.

More information: 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 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.

ENQUIRIES

EQTEC plc	[phone]
David Palumbo / Gerry Madden
Strand Hanson - Nomad & Financial Adviser	[phone]
James Harris / James Dance / Jack Botros
Arden Partners - Broker	[phone]
Paul Shackleton (Corporate) / Simon Johnson (Sales)
Maitland/AMO - Communications & PR/IR adviser	[phone]
James Benjamin/Rhys Jones	[e-mail]

About EQTEC plc

EQTEC is a world leading gasification technology partner with proven proprietary patented technology for sustainable waste-to-value applications.

EQTEC designs and supplies advanced gasification solutions that have a higher efficiency product offering and are modular and scalable from 1MW to 25MW. EQTEC's versatile solutions are independently proven to process over 50 different types of feedstock, including municipal waste, agricultural waste, biomass and plastics with no hazardous waste or toxic emissions . EQTEC's solutions produce a uniquely pure high-quality synthesis gas (syngas), that is capable of being used for the widest applications in the creation of energy, hydrogen and biofuels.

EQTEC's proprietary technology design together with deployment and maintenance capabilities mitigate the risks when using third party equipment. EQTEC's Technology Integration capabilities enable the Group to lead collaborative ecosystems that build sustainable waste elimination and green energy infrastructure.

The Company is quoted on AIM (ticker: EQT) and the London Stock Exchange awarded EQTEC the Green Economy Mark that recognises listed companies with 50% or more of revenues from environmental/green solutions.

Further information on the Company can be found at www.eqtec.com .

 

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