EQTEC Plc (LON:EQT) shares shot higher on Tuesday after it revealed a “landmark deal”, with Phoenix Energy signing a first equipment purchase contract in relation to the US company's first power plant in California.
The AIM-listed firm which is developing technology solutions for biomass gasification-to-energy projects said Phoenix will be the first customer in the US to utilise EQTEC's gasification-to-energy technology. and the company expects that this will lead to further opportunities throughout the US market.
The company announced on 24 September 2018 that it had signed a Memorandum of Understanding (MoU) with Phoenix to supply its proprietary EQTEC Gasifier Technology for two power plants in California, expected to be valued in the region of EUR10mln.
It said that converting the MOU into a first formal contract with Phoenix represents a significant milestone for EQTEC and its management expect this first contract to start generating revenue during the first-half of 2019, continuing through the full-year 2019 and 2020.
Ian Price, EQTEC’s CEO , commented: "This is a landmark deal for EQTEC which highlights the global reach of our technology.”
He added: “This contract represents the first contract signed as part of this plan and the Company will continue to focus on executing opportunities in its project pipeline, including the contract for Phoenix's second power plant, in the near term.”
In early morning trading, EQTEC shares jumped 22.5% higher to 1.45p.