13:31 Tue 06 Mar 2018
EQTEC PLC - Update on project pipeline
("EQTEC" or the "Company")
Update on project pipeline
As stated in the Admission document dated
The Company is pleased to report significant progress by signing a new Memorandum of Understanding ("MOU") and taking key steps towards commencing these projects.
The Company was recently informed by
EQTEC had to renew its agreements with the new operator of the project and has now signed an MOU with the consortium containing Brooke, Exergon Sp. z o.o. ("EXERGON") and
Under the terms of the MOU, EQTEC will sell its patented EQTEC Gasifier Technology ("EGT") to RAFAKO who is the Engineering, Procurement and Construction ("EPC") Contractor for the whole power plant and will exclusively use its proprietary EGT for the gasification and gas cleaning process. The Usk site has already in place gas engines, a biomass drier, absorption chiller and grid connection among other equipment and the new owner has chosen EGT to complete the project.
Brooke will seek to secure equity finance for the project and RAFAKO will seek the debt financing. Financial close and the commencement of the project is, as previously expected, in the first half of 2018.
EQTEC revenues from the
Reliable Energy Solutions
Reliable Energy Solutions ("Reliable") is focused on developing
A primary EPC contract was signed in
In 2018, EQTEC and Energy China have been working on the engineering of a revised scheme for the application of EGT coupled to a steam turbine instead of the previous scheme of coupling to a gas engine. The shift to a steam turbine is because initial indications show an increase on the projected returns of the project. A future benefit of this revised scheme is that the additional engineering work will enable the Company to compete in a wider range of projects with power outputs up to 50 MWe.
As a result of the revision of the scheme, financial close and the commencement of both projects is now expected to occur within the next three to six months, when the engineering works to develop the revised scheme for the application of EGT coupled to a steam turbine will be finished. The estimated turnover of EQTEC on each project is
Discussions are ongoing with China Construction Bank for debt finance for the projects and with a major third-party investor for the provision of equity for each project.
Enquiries
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+353 (0)21 2409 056 |
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+44 (0)20 3861 6625 |
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+44 (0)20 3700 0093 |
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+44 (0)20 3005 5000 |
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+44 (0)20 7618 9100 |
Harry Chathli / |
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Notes to Editors
About
EQTEC's business model involves sourcing and providing assistance in developing waste elimination projects to which it will ultimately sell its EQTEC Gasifier Technology ("EGT") and O&M services. EGT enables project developers to construct waste elimination plants and recover electrical and thermal energy from the waste streams.
EQTEC sources projects that have a local supply of waste in need of elimination and conversion. It builds relationships and brings together the developers, the waste owners, the building contractors and funders. It then supplies the energy recovery technology and provides engineering services to the projects. Furthermore, EQTEC will provide O&M services to the operating projects generating recurring revenues over the life of the projects.
The Company is quoted on AIM and trades as EQT. Further information on the Company can be found at www.eqtecplc.com.
About RAFAKO and EXERGON
RAFAKO is part of the
EXERGON is a spinout from the
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