Collaboration Agreement with Carbon Sole Group

RNS Number : 2987R

EQTEC PLC

29 June 2020

 

29 June 2020

EQTEC plc

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

Collaboration Framework Agreement with Carbon Sole Group

EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, is pleased to announce that its wholly owned subsidiary, Eqtec Iberia SLU, has signed a Collaboration Framework Agreement (the "Agreement") with Carbon Sole Group Limited ("Carbon Sole"), an Irish based group focused on the provision of green energy solutions to the Irish market.

Under the Agreement, the Group has agreed with Carbon Sole to jointly participate in projects in Ireland involving biogas and district heating, waste-to-energy and other energy infrastructure projects using EQTEC's Gasifier Technology ("EGT").

Key Elements of the Agreement

· Carbon Sole considers EQTEC as the exclusive gasification technology supplier and co-developer to three planned Green Energy Parks utilising advanced biofuels, energy storage and district heating networks, located in Ireland.

· The first two proposed sites are already zoned for enterprise/industrial and are suitable for heat and electricity generation using biofuels. 25MWe grid connection contract offers have previously been secured for each site and these will be resubmitted.

· The proposed plants will be designed to handle forestry and agri-waste in line with biofuels obligation schemes and certification requirements. Fuel will be sourced locally from under-utilised forest waste biomass supply.

· Carbon Sole will be responsible for obtaining the permits, licences and authorisations, power purchase agreements and feedstock agreements for the projects which are anticipated to be in place by Q1 2021.

· EQTEC and Carbon Sole will seek to develop a portfolio of projects together, utilising EQTEC's EGT Technology.

· EQTEC and Carbon Sole will co-operate to source the necessary equity and debt financing for projects in the pipeline, including project acquisition costs.

· Carbon Sole will act as an ongoing business developer for the Group for advanced green energy utility projects in Ireland and will also introduce opportunities for the sale of engineering design services provided by the Group.

· Any project that the parties decide to take forward and develop would be subject to a separate detailed contract and further announcements will be made, as and when appropriate.

· It is envisaged that EQTEC will, subject to contract, have the option but not the obligation to obtain up to a 25% equity interest in each project that might be progressed under the Agreement.

· The Agreement will be valid for a period of 24 months, unless otherwise extended by mutual agreement.

Designs for the three initially identified bioenergy park project, are in the process of being updated to utilise EQTEC's technology solutions. The updated EQTEC designs are to be submitted and intended to qualify for Irish Renewable Electricity Supports, Advanced Biofuels Obligations, Renewable Heat and other green Climate Action energy support schemes which, if secured, would be expected to facilitate increased investment into a number of project opportunities.

Carbon Sole is a Bioenergy park development and asset management company that designs, structures and delivers green energy projects, with a focus on decarbonising regional gateway towns while supporting growth in employment and investment. Carbon Sole's focus is on Green Energy Biopark projects that optimise land use, and utilise biomass more efficiently for green electricity, advanced biofuels, district heating and energy storage, delivering fossil fuel energy independence, sustainability and growth to the towns and regions, in line with Irish Government policy and EC directives.

David Palumbo, CEO of EQTEC, commented :  

"Developing partnerships with high quality and established stakeholders in our target markets has been a key focus of EQTEC since I joined the company. We are particularly excited about this collaboration agreement with Carbon Sole as we rarely find a developer with such a great understanding of the sector matched with a thorough understanding of the energy needs of the towns and available resources in which the projects are to be vested.

"Carbon Sole have made numerous public sector presentations and submissions towards the decarbonisation of gateway towns and regions, including actively participating in public sector stakeholder steering groups and workshops in respect of Renewable Supports and Climate Action Funding. Carbon Sole have been advising both public and industrial sectors in Ireland on the decarbonisation of industrial processes and energy transition for a number of years. We enter this partnership very confident that it will evolve beyond the current three projects under development.

"Ireland is a very interesting market for us, offering numerous opportunities, particularly given its unique characteristic of being now the only EU state in the islands of the North Atlantic. It is also the location of our corporate headquarters and we intend to be a significant player in the decarbonisation process of its industries."

Sean Daly, Director of Carbon Sole, commented :  

"Carbon Sole Group are delighted to announce our partnership with EQTEC focused on the development of our projects in Ireland, starting with the regional gateway towns of Shannon and Sligo, to the North and Mid-West of Ireland, which are strategically important to the development of Industry clusters, employment and living.

"EQTEC advanced technologies will be key to enable Carbon Sole to utilise locally sourced forestry and agri-waste materials, to deliver a mix of green energy products to meet the various energy demands of each town in electricity, heating and transport, securing future sustainable growth, employment and low carbon economic development."

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 - Joint Broker	[phone]
Paul Shackleton (Corporate) / Fraser Marshall (Sales)
SI Capital Limited - Broker	[phone]
Nick Emerson / Jon Levinson
IFC Advisory - Financial PR & IR	[phone]
Tim Metcalfe / Graham Herring / Zach Cohen

Notes to Editors

About EQTEC plc

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

EQTEC designs and supplies advanced gasification solutions that have a higher efficiency product offering and are modular and scalable from 2MW to 30MW. Of particular importance is the versatility of our solutions to process over 50 different types of feedstock, including municipal waste, agricultural waste, biomass and plastics. Our solutions produce a uniquely pure high-quality synthesis gas (syngas), that is capable of being used for the widest applications in energy and biofuels.

Proprietary technology design together with deployment and maintenance capabilities mitigate the risks when using third party equipment.  Our Technology Integration capabilities enable us to lead collaborative ecosystems that build sustainable, waste elimination and green energy infrastructure.

The Company is quoted on AIM, bears the Green Economy Mark awarded by the London Stock Exchange and trades as EQT.  Further information on the Company can be found at www.eqtec.com .

About Carbon Sole Group Limited

Carbon Sole is a Bioenergy park development and asset management company that designs and structures green energy projects around available local resources and local energy needs, substituting fossil fuels with renewable green eco-responsible alternatives that deliver carbon neutral sustainable development, employment and growth.

Further information on the Company can be found at www.carbonsole.ie .

 

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