logo-loader
viewEQTEC PLC

React Energy soars as Newry Biomass is ‘repowered’

The new deal is seen as a second chance for the Newry Biomass venture which was put on care and maintenance in 2014.

shutterstock_146565584.jpg
React rallied 111% to trade at 4.75p this morning

Shares in React Energy (LON:REAC) soared on Monday morning follows new plans for the Newry Biomass plant, in northern Ireland, where a deal has been done to ‘repower’ the project.

Newry Biomass Ltd, 50.01% owned by React, will via a €5mlndeal with Spanish company EBIOSS Energy acquire the EQTEC Integrated Biomass Gasification Power Plant which will power the project.

React said, in a statement after the market’s close on New Year’s Eve, that the repowering costs are estimated at £8mln (including the acquisition costs).

As React’s sharp share price rally, up 111% to 4.75p this morning, reflects the new deal is seen as a second chance for the Newry venture.

The project, which is now envisaged a 4 megawatt capacity, was granted planning permission in May 2009 as a waste-to-energy plant. Some 25,000 tonnes of wood would be processed to generate that power, according to estimates at that time.

The Newry Biomass plant was subsequently built with the support of investments amounting to £11.7mln (including £5.75mln from React), but, the original gasification technology underperformed.

It was put on ‘care and maintenance’ in September 2014 whilst new funding and technology was sought.

Newry Biomass intends to raise the necessary finance to complete the acquisition and plant upgrades before the end of the first quarter.

Once the deal reaches financial close, Newry Biomass expects the plant will be able to export power to the grid within 15 months.

Quick facts: EQTEC PLC

Price: 0.135 GBX

AIM:EQT
Market: AIM
Market Cap: £4.31 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of EQTEC PLC named herein, including the promotion by the Company of EQTEC PLC in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

EQTEC signs framework agreement with California-based Phoenix Biomass Energy

EQTEC Plc's (LON:EQT) Ian Price adds some detail to the agreement announced today with California-based firm Phoenix Biomass Energy to develop biomass gasification power plants in the US. The companies have already identified five projects in the US. EQTEC will provide its proprietary...

on 22/5/19

2 min read