Contract signed with Idex for FEED at France MDC

EQTEC PLC

17 August 2023

 

17 August 2023

EQTEC plc

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

 Contract signed with Idex for Front End Engineering Design at France MDC

EQTEC plc (AIM:EQT), a global technology innovator powering distributed, decarbonised, new energy infrastructure through its waste-to-value solutions for hydrogen, biofuels and energy generation is pleased to announce that, through its subsidiary EQTEC Iberia SLU, it has signed with French infrastructure owner and utility company Idex Services ("Idex") a contract for the Front End Engineering Design (the "FEED") (the "FEED Contract" or "Agreement") at the Company's France Market Development Centre ("France MDC").

Under the FEED Contract, the Company has agreed its scope of services and an execution plan to support all design work up to financial close.  The work outlined in the FEED Contract is expected to start immediately and be completed by December 2023.  The Company expects to receive c. €440,000 for the full scope of FEED work.

The FEED will provide owner-operator Idex with all technical information essential to achievement of Final Investment Decision ("FID") toward retrofit and construction at the France MDC. The Company and Idex are targeting FID in Q1 2024.

Assuming FID based on the current configuration, EQTEC will be the core technology supplier for France MDC, receiving fees for engineering services, equipment, commissioning and licensing over the period Q4 2023 - Q1 2025, estimated to total c. €15 million.

Highlights

The scope of the FEED includes:

·    Validation of the end-to-end process defined during the preliminary technical assessment in 2022;

·    Detailed analysis of the issues identified with the predecessor plant and confirmation of EQTEC proprietary technology solutions for implementation during retrofit and construction;

·     Confirmation of the plant layout within previously defined site parameters;

·     Request for offers and clarifications from suppliers for ancillary equipment to be replaced or renovated;

·     Supply of all plans and documents essential to the FEED;

·     Supply of technical specifications for equipment to be ordered and supplied;

·     Provision of a detailed cost estimate for equipment and services;

·     Identification of construction risks and proposal of mitigations;

·     Establishment of a preliminary construction schedule for the project.

The Agreement follows the Company's announcement on 12 July 2023 that Idex had acquired 95% of the share capital of Grande-Combe SAS ("Grande-Combe"), the project company for the France MDC, together with the project to construct and commission it.

The Agreement supports the Company's business strategy of working with top-tier partners able to support the development, construction, commissioning and operations of plants running EQTEC technology, so that the Company may focus on executing its core capabilities of technology development and engineering.

David Palumbo, EQTEC CEO, commented:

"We are pleased to be working with Idex on this second project together, which is of particular importance to us as our France MDC. We appreciate the impetus Idex has shown through its agreement of an ambitious schedule toward completion of design and progression toward construction start by early 2024. This third MDC for EQTEC and second project in partnership with Idex together indicate growing demand from innovative, blue-chip partners and funders to build and operate new energy infrastructure powered by EQTEC to futureproof their operations."

Stephane Guillet, Idex Director of New Energy Vectors, commented:

"We are looking forward to completing all the engineering and developing work required at Grand-Combe by year end so that we may progress to procurement and construction early in 2024.  Our team is very familiar with the project's potential and the local market dynamics, and we believe with our expertise and resources we will be able to operate another successful plant that will be a reference for this type of new energy infrastructure in France.

Idex is willing to grow its footprint in this domain and has selected EQTEC technology to do so. We are delighted to cooperate with EQTEC, where EQTEC technology enables Idex to propose attractive commercial terms to our customers, paving the way for future developments to grow.

Idex is today the only vertically integrated market operator across the entire energy value chain.  We engage in energy production from local and carbon-free energy resources, energy distribution through heating and cooling networks and up to energy optimisation of its final use in industrial, residential and tertiary buildings."

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014, as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended, and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

ENQUIRIES

EQTEC plc David Palumbo / Nauman Babar	[phone]
Strand Hanson - Nomad & Financial Adviser James Harris / Richard Johnson	[phone]
Panmure Gordon - Broker John Prior / Hugh Rich	[phone]
Instinctif - Media & investor relations enquiries Guy Scarborough / Tim Field	[e-mail] [phone] / [phone]

About the project

The project will see the replacement of core technology and relevant ancillary equipment at an existing plant originally developed by Group Bonnefoy at its stone quarry site located at Villers-sous-Montrond, Doubs, France, near the Franco-Swiss border. The existing gasification plant was designed using non-EQTEC technologies but was never fully commissioned, as the previous technology did not successfully complete performance and endurance tests. As a result, the previous project company, SPV Synnov Déchets SAS, entered bankruptcy in November 2021, after which the Company was approached as a potential buyer.

The Company on 14 March 2021 announced its intention to acquire, upgrade and recommission the 6.5 MWe plant, replacing the failed gasification technology with EQTEC technology. On 07 September 2022, the acquisition was approved and finalised by France's Ministère de l'Économie, des Finances et de l'Industrie (MINEFI). It is the Company's intention that the France MDC process diverse feedstock, with a combination of wood, contaminated wood and RDF and is expected to be France's largest ever gasification project for combined heat and power.

About Idex

Founded in France in 1963, Idex develops, designs, finances, builds and operates local energy and carbon-free infrastructure, which provides renewable heat and local electricity supply to buildings, cities & industry. 

With 5,700 employees and a turnover of €2 billion in 2022, Idex is currently the only vertically integrated market operator delivering the complete value chain for local energy provision. The Group is involved in the production of thermal or electrical energy from local and low-carbon energy resources (geothermal, solar, biomass, waste), the distribution of this energy through district heating and cooling networks, to its final use in industrial, residential and tertiary buildings and other applications.

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.

 

END