Clarification: North Fork Community Power Project

RNS Number : 8394E

EQTEC PLC

12 July 2021

 

12 July 2021

EQTEC plc

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

Clarification with respect to North Fork Community Power ("NFCP") project

EQTEC plc (AIM: EQT), a world-leading gasification solutions company building the future of a cleaner waste-to-energy industry, feels obliged to clarify certain matters with respect to recently published minutes on the website of North Fork Community Development Council ("NFCDC"), following its Regular Board Meeting held on 28 June 2021 (the "Minutes").

The Minutes contain some claims in relation to North Fork Community Power LLC ("NFCP"), its partners, its funding and management of the project underway to build a 2MWe plant based on EQTEC technology and that will transform locally sourced forestry waste into power and biochar for the local community whilst reducing the risk of forest fires in the area ("the Project"). As some of the comments in the Minutes suggest a lack of understanding of project accountabilities and contractual relationships, the Company has written directly to NFCDC to clarify these points and express its concerns.

NFCDC is a volunteer-led, not-for-profit, local, community initiative formed to promote in particular the old mill site on which the Project is located. The members of NFCDC are primarily residents in the North Fork area of California. NFCDC is, like the Company, a Managing Member of NFCP.

EQTEC would like to clarify that it is the technology provider to the Project and has no role or scope in relation to project management. In its role as a Managing Member and equity owner in NFCP with a vested interest in the success of the Project, the Company has consistently driven NFCP to appoint dedicated, professional Owners Representatives and Project Managers to improve discipline, focus and risk management on the Project. Since 2020, EQTEC has taken the lead in sourcing, vetting and introducing to NFCP professional candidates to carry out this role, even advancing the funds to NFCP to pay their fees.

Based on its continued interest and investment in the Project, the Company has also taken a lead in bringing all investors and stakeholders into negotiations aimed at ensuring the Project is fully funded and can proceed with construction, commissioning and live operations. The Company has made a non-binding proposal to provide requisite funding, as a convertible loan facility, to take the Project to completion ("the Proposal"). The proposed facility, if fully drawn down and converted, would result in the Company taking a controlling interest in NFCP and the Project.

The Proposal was signed by all Managing Members of NFCP, including NFCDC. The terms are currently undergoing final negotiations for legal execution and the Company anticipates this will conclude shortly, so that accelerated, focused work can continue at pace on the Project.

David Palumbo, CEO of EQTEC, commented:

"We remain fully committed to the North Fork community and value our relationship with North Fork Community Development Council, our fellow Managing Member for NFCP. The plant at North Fork, enabled by EQTEC's Advanced Gasification Technology, is the beginning of our efforts to generate cleaner energy for California and reduce the risk of forest fires, through clearing out forestry waste and putting it to constructive use. It is our hope that the North Fork plant becomes another Market Development Centre ("MDC") for us that allows us to bring our capabilities to more communities across the state."

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
Arden Partners - Joint Broker	[phone]
Paul Shackleton (Corporate) / Simon Johnson (Sales)
Canaccord Genuity - Joint Broker	[phone]
Henry Fitzgerald-O'Connor / James Asensio / Patrick Dolaghan
Alma PR - Financial Media & Investor Relations	[phone]
Josh Royston / Sam Modlin / Matthew Young	[e-mail]
BECG - General Media Enquiries	[phone] / [phone]
Carrie Lowe / Tom Gosschalk	[e-mail]

About EQTEC plc

As one of the world's most experienced gasification technology and engineering companies, with a growing track record of delivering operational and commercial success for transforming waste-to-energy through best-in-class technology innovation, engineering and project development , EQTEC brings together design innovation, project delivery discipline and solid commercial experience to add momentum to the global energy transition. EQTEC's proven, proprietary and patented technology is at the centre of clean energy projects, sourcing local waste, championing local businesses, creating local jobs and supporting the transition to localised, decentralised and resilient energy systems.

EQTEC designs, supplies and builds advanced gasification facilities in the UK, EU and US, with highly efficient equipment that is modular and scalable from 1MW to 30MW. EQTEC's versatile solutions process over 50 varieties of feedstock, including forestry wood waste, vegetation and other agricultural waste from farmers, industrial waste and sludge from factories and municipal waste, all with no hazardous or toxic emissions . EQTEC's solutions produce a pure, high-quality synthesis gas ("syngas") that can be used for the widest range of applications, including the generation of electricity and heat, production of synthetic natural gas (through methanation) or biofuels (through Fischer-Tropsch, gas-to-liquid processing) and reforming of hydrogen.

EQTEC's technology integration capabilities enable the Group to lead collaborative ecosystems of qualified partners and to build sustainable waste reduction and green energy infrastructure around the world.

The Company is quoted on AIM (ticker: EQT) and the London Stock Exchange has awarded EQTEC the Green Economy Mark, which 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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