Deeside RDF Project Development Update

RNS Number : 8614G

EQTEC PLC

01 April 2022

 

1 April 2022

EQTEC plc

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

Deeside RDF Project Development Update

EQTEC plc (AIM: EQT), a world-leading technology innovation company enabling the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and other energy production, is pleased to announce that EQTEC's wholly owned subsidiary, Deeside WTV Limited ("Deeside WTV") has signed a binding supplemental agreement (the "Supplemental Agreement") with Logik Developments Limited ("Logik"). The Supplemental Agreement, inter alia, sets out the terms on which Logik and Deeside WTV (together, the "Parties") have agreed to vary the terms of the share purchase agreement signed by the Parties on 7 December 2020, as amended by the supplemental agreement announced on 6 December 2021 (the "Existing SPA").  

Key terms of the Supplemental Agreement

· Deeside WTV will acquire 32% of the share capital of Logik WTE Limited (the "Project SPV"), the entity which holds the land and necessary planning permissions for the Deeside RDF project (the "Project"), with the consideration to be satisfied by the settlement of advances from the Group to Logik and the Project SPV in an amount of c. £2.3 million;

· Completion of Deeside WTV's acquisition of the interest in the share capital in the Project SPV is subject to third party consent and is expected to complete on or before 30 June 2022;

· Parties are in discussions to procure a buyer for the Project SPV at a minimum valuation of £15 million. Subject to the sale of the Project SPV, EQTEC will invoice up to £2 million for its project development services to the Project SPV (such fee to be reduced on a pound for pound basis if the investment received is less than £17 million), subject to certain conditions to be finalised and agreed as part of ongoing discussions with potential buyers; and

· While the amendment of the Existing SPA to extend the completion date to 30 June 2022 is immediately effective, the Parties have agreed to act in good faith and to use all reasonable endeavours to implement the additional undertakings and agreements in the Supplemental Agreement as summarised in this announcement, including to amend the terms of the Existing SPA and to finalise other necessary documentation such as a shareholders' agreement for the Project SPV.

Project progress

EQTEC has appointed Black and Veatch, a global engineering, procurement, consulting and construction company specialising in sustainable infrastructure development, to conduct a peer review of the overall Project, including the technology interfaces within the Project. The Group is also in advanced commercial and contractual discussions to appoint Black and Veatch for the full detailed design for phase 2 of the Project.

Discussions with technology partners have progressed with EQTEC having provided all the concept design and syngas specifications to the shortlisted candidates to provide their technical and commercial proposal for the downstream technology to convert syngas into hydrogen.

EQTEC has joined the Deeside Decarbonisation Forum, in partnership with Uniper, Eni, Wales & West Utilities, Triton Power and Uchelgais Gogledd Cymru (Ambition North Wales), an open forum to help catalyse and accelerate the decarbonisation of the region.

Ongoing discussions with development and infrastructure investors, as well as owner-operators for a minimum of £15 million sale of the Project SPV are progressing with a number of parties engaged at due diligence stage.

Further information about the Project

EQTEC is lead developer and technology provider for the Project in partnership with Logik and Anaergia Inc. through the Project SPV. As announced on 28 October 2021, Flintshire County Council's Planning Committee has resolved to grant planning permission for the proposed 9.9 MWe plant to enable a complete and local waste-to-energy solution, combining a 182,000 tonne waste reception plant along with 2 MW anaerobic digestion ("AD") and EQTEC Advanced Gasification Technology. The planning authority's decision follows its prior approval of the site for the original plan of a recycling and AD facility. Additionally, through the Project, EQTEC and Toyota are exploring an innovative, circular and sustainable waste-to-energy solution for Toyota's engine manufacturing plant in Deeside. The site is currently on 6.27 hectares of land off Weighbridge Road on Deeside Industrial Estate, one of Europe's largest such industrial sites. The Project site is wholly owned by the Project SPV (acquired December 2020) and was formerly a Gaz de France power station.

The Project is one of three waste-to-energy/fuel projects that the Group is developing in the UK, including at Billingham, Teesside and Southport, Merseyside.

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 / Nauman Babar
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 .

About Anaergia

Anaergia was created to eliminate a major source of greenhouse gases ("GHGs") by cost effectively turning organic waste into renewable natural gas ("RNG"), fertilizer and water, using proprietary technologies. With a proven track record from delivering world leading projects on four continents, Anaergia is uniquely positioned to provide end-to-end solutions for extracting organics from waste, implementing high efficiency anaerobic digestion, upgrading biogas, producing fertilizer and cleaning water. Our customers are in the Municipal Solid Waste, Municipal Wastewater, Agriculture, and Food Processing industries. In each of these markets Anaergia has built many successful plants including some of the largest in the world. Anaergia owns and operates some of the plants it builds, and it also operates plants that are owned by its customers.

 

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