Technology & market review/Potential collaboration

RNS Number : 0253B

EQTEC PLC

05 October 2020

 

5 October 2020

EQTEC PLC

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

AWARD TO WOOD FOR AN INDEPENDENT TECHNOLOGY AND MARKET REVIEW

HEADS OF TERMS FOR A POTENTIAL STRATEGIC COLLABORATION

EQTEC plc (AIM: EQT), a world leading gasification technology solutions company for waste-to-energy projects, is pleased to announce that, following a comprehensive tendering process, it has awarded an independent technology and market review to Wood Group UK Limited ("Wood").  The Company has also signed non-binding heads of terms with Wood and Deltasource (Middle East Branch) ("DS MENA") (the "Heads of Terms"), with the intent of entering into a non-exclusive strategic collaboration to help ensure the effective deployment of EQTEC technology into the global energy-to-waste sector. EQTEC has selected DS MENA, an integrated investor and multi-discipline advisory partner engaged in the capital development and operation of energy assets, to provide an effective tripartite approach, jointly with EQTEC and Wood, to source, develop, structure and de-risk future potential projects using EQTEC's technology.

Highlights

· Following a comprehensive tendering process with many of the leading global engineering players, EQTEC has awarded Wood, a global engineering and consultancy company, a contract for an independent technology review and market review.

· The scope of work for Wood comprises an independent review of EQTEC's advanced gasification technology with key focus on the Group's 6 MW power plant in Movialsa, Spain, that has continued to operate successfully for over nine years with over 125,000 independently audited hours of operation, and its application to a wide range of mixed waste fuels. In conjunction, Wood will also be completing a market review, assessing the potential for the effective market penetration of EQTEC's waste gasification technology solutions considering waste type, availability, regional policies and regulations and capital cost comparisons. These two reviews are expected to be completed during Q4 2020 and the Company will make a further announcement at the appropriate time.

· Pursuant to the Heads of Terms, EQTEC, Wood and DS MENA have agreed to enter into discussions scoping the details of the potential agreement to collaborate in a structured manner and share potential benefits as new developer consortiums progress technical feasibility studies through to full project definition, final investment decision, and start up.

· EQTEC has an evolving business model that targets making effective use of this type of collaborative agreement, which helps to maintain a low internal cost base and a success-based collaboration that harnesses local and sector expertise and global reach and aligns interests to help ensure maximum value is delivered.

· EQTEC expects that a collaborative agreement such as the one envisaged would help ensure that the Group will be in a strengthened position for entering potential future projects at the equity level with an enhanced knowledge of the financial and non-financial risks of each potential project and the return on equity expectations for EQTEC shareholders and wider stakeholders.

· Wood has a long standing waste-to-energy capability and will develop clarity of potential applications of EQTEC's technology. Engagement with EQTEC and other technology companies allows Wood's experts to be better informed when engaging with clients, while supporting the development of technologies and projects which will drive the energy transition.

· The team at DS MENA brings deep knowledge of the full spectrum of elements that impact the commercial, funding and execution ability of energy project developments that embrace the transition to a cleaner, lower carbon and more sustainable energy economy. DS MENA is also expected to provide an efficient channel for Middle East project opportunities and local partnerships through one of its local associated companies, DS MENA LLC.

David Palumbo, CEO of EQTEC, commented:

"I am delighted that EQTEC has appointed industry leader Wood to complete the independent technology and market review and signed a heads of terms to explore the potential for future collaboration, to help to accelerate bringing EQTEC's advanced gasification technology to waste to energy projects across the globe. Through partnerships like these, EQTEC would be efficiently leveraging one of the largest and most respected global engineering players to improve significantly the knowledge and exposure of EQTEC's technology to international businesses and accelerate the global growth of its short and longer term pipeline of opportunities."

Carl Sykes, Energy Transition Director for Deltasource (Middle East Branch), commented:

"The award of this scope to Wood is the first step in an intended collaboration process that is expected to move significantly the dial with respect to the conversion of potential projects to profitable energy-to-waste assets in an environmentally friendly way. As specialist investors in and advisors to the natural resource and energy sectors, we are highly sensitive to the various factors that underpin an investable project, a robust plan, a predicable execution and safe, low carbon, sustainable and profitable asset operation. We will also bring intimate knowledge of the Middle East landscape and local energy market dynamics."

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) / Fraser Marshall (Sales)
Maitland/AMO - Strategic Communications & PR/IR adviser	[phone]
James Benjamin	[e-mail]
IFC Advisory - Financial PR & IR	[phone]
Tim Metcalfe / Graham Herring / Zach Cohen

About EQTEC plc

EQTEC is a world leading gasification technology partner with proven proprietary patented technology for cost effective 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 solutions are independently proven to process over 50 different types of feedstock, including municipal waste, agricultural waste, biomass and plastics. 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.

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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