EQTEC PLC (AIM:EQT), a specialist in waste-to-value technology, has unveiled a significant equipment supply agreement for a new project in Wilseyville, California.
The deal, signed with Blue Mountain Electric Company (BMEC), a project company operated by renewable energy group Phoenix Biomass Energy, involves the development of a plant designed to convert wood waste into synthesis gas (syngas) and electricity.
The wood will come from tracts of land in the Sierra and Central Valley area of the state where forest fires are prevalent, and prevention is aided by clearance.
This plant, set to process around 25,000 tonnes of waste annually, will produce syngas to fuel a gas engine. This process is expected to generate approximately 3.0 MWe of electricity.
Additionally, the plant will produce about 2,400 tonnes of biochar (a form of charcoal) each year, which can be sold for agricultural and other uses.
EQTEC's involvement in the project begins with basic engineering work, scheduled for early 2024, with an invoice of approximately US$330,000 for this initial phase.
The company has also provided a comprehensive quotation for detailed engineering, equipment supply, construction advisory, and commissioning services, estimated at around US$10.3 million, contingent on BMEC securing the necessary funding.
"We are pleased to finally execute this contract with BMEC," said chief operating officer, Jeff Vander Linden.
"The opportunity to support forest fire prevention in California through the application of EQTEC technology for clean, safe disposal of forestry waste has long been an ambition for us.
"The project has secured credible funding from national and state funding sources as well as private lenders, so we feel this work can proceed successfully.
"Although the North Fork project has taken much longer than we have liked, it has also allowed us to learn and improve project execution. It is on this basis that we very much look forward to pressing ahead with our second project in California."