EQTEC advances financial close of California biomass project

The company also said the sale and services contract with NFCP announced in September has now been executed

EQTEC PLC - EQTEC advances California biomass project

EQTEC PLC (LON:EQT) said it has signed the legal documentation to allow the financial close of the proposed construction and operation of the North Folk 2W biomass project in California.

In a statement, the AIM-listed firm said it co-operated closely with partner Phoenix Biomass Energy, which is also a shareholder in North Fork Community Project (NFCP), the project's manager, to achieve the milestone.

READ: EQTEC raises over £950,000 from share subscription

EQTEC also announced that the sale and services contract with NFCP announced in September has now been executed.

Under the contract, the firm will invoice NFCP a total of €2.2mln for the sale of equipment and the supply of engineering and design services, comprising a down-payment of €880,000 on execution, as well as milestone payments leading up to commissioning of the project, expected in the first quarter of 2021.

According to NFCP, the biomass project is expected to cost US$20mln and will have the capacity to generate US$4mln in annual revenue.                                                                

“We believe that there will be many more opportunities in California arising from the need to address the current critical situation facing the state with regards with forestry wood waste,” chief executive David Palumbo said in the release.

Shares jumped 16% to 0.13p on Thursday morning.

--Adds shares--

Quick facts: EQTEC PLC

Price: 1.689 GBX

Market: AIM
Market Cap: £119.82 m

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