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EQTEC jumps as it signs first commercial agreement in France to develop biogas power plant

Under the agreement with Biomasse 31 the company will provide technology, equipment and services to help construct the plant in the Gratens commune

EQTEC PLC - EQTEC signs first commercial agreement in France to develop biogas power plant
The agreement is valued at around £4.7mln

EQTEC PLC (LON:EQT) shares rose sharply on Wednesday as it inked an agreement to develop a 1.18 megawatt (MW) biogas power plant in the area of Gratens in France.

Under the €5.5mln (£4.7mln) commercial agreement with French group Biomasse 31, EQTEC’s first in the country, it will provide the technology, equipment and services required to construct the plant.

READ: EQTEC agrees path to bond financing for California project

While the group expects to incur around €100,000 in costs before financial close of the deal in order to obtain permits, this sum will be repaid at a 2x multiple.

The firm also has exclusive rights to develop the project until the end of next year, the deadline deemed necessary to secure all permits and begin construction, although this can be extended by mutual agreement.

Final documentation for the agreement is now being processed, while the company has also reached out to third parties regarding funding for the project.

David Palumbo, chief executive of EQTEC, said the project will “act as the foundation for growth and development in the region", and that the potential market for its technology in France was “only starting to open up”.

“It is very encouraging to sign our first agreement for a commercial project in France, with a partner so embedded in the local community and so committed to developing energy transition infrastructure throughout the country”, he added.

EQTEC shares were 16.7% higher at 0.1p in early deals.

--Adds share price--

Quick facts: EQTEC PLC

Price: 0.75 GBX

AIM:EQT
Market: AIM
Market Cap: £51.52 m
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