EQTEC PLC (AIM:EQT) has acquired the properties in Castiglione d'Orcia Italy that house its Italia MDC plant and feedstock storage facilities.
The acquisition includes land, buildings and associated rights of way including the housing of the core gasification technology supplied by EQTEC to the plant.
The consideration was €0.57 million in cash, funded by Italia MDC from a €2.9 million facility provided by Banda del Fucino.
Prior to the acquisition, Italia MDC had been leasing the two properties from Toscana Cereali Societa' Cooperativa Agricola with a saving on lease payments of €0.1 million per annum going forward.
David Palumbo, EQTEC chief executive, said: "Italia MDC has completed the Transaction on schedule and thus takes ownership of critical infrastructure and land to support the plant.
“In addition to removing rent as a run cost to the facility, in the board's view this transaction also substantially enhances the value of the combined facility and gives Italia MDC the flexibility to develop it further for efficiencies and new revenue opportunities."