In an announcement, MetalNRG, a natural resource investing and exploration firm, said it set up a Special Purpose Vehicle (SPV), MetalNRG Eco Ltd, to develop biomass, waste to energy projects in the UK and Europe. It added waste gasification specialist EQTEC will provide technical, financial and operational advice and become the company’s preferred technology partner for green energy projects.
MetalNRG said the focus will be on ‘shovel ready’ projects that meet its investment criteria, which are in the UK and Europe and with a capital expenditure investment of between £5-£15mln.
MetalNRG said EQTEC has agreed to acquire £500,000 of MetalNRG shares when the company finalises its prospectus.
"EQTEC is the ideal partner for MetalNRG to work with and accelerate the generation of environmental impactful projects. Their technical and project delivery expertise in creating commercial and sustainable waste to energy plants, which we believe is the future of energy market especially in Europe, makes them the ideal partner for us to work with”, MetalNRG chief executive Rolf Gerritsen said in a statement.
“I look forward to updating the market with additional information as we move forward with this extremely exciting project, which will see MetalNRG at the heart of the energy transition and help the world shift from fossil fuels to renewable energy. We have always said that energy transition will come from within the market and for MetalNRG this is the natural next step following BritNRG's acquisition of Sunswept and has been in planning for a number of months", he added.
EQTEC forecasts 2021 profitability
In a separate announcement, EQTEC said 2021 is forecast to be its first year of profitability as the company said it is targeting “considerable” sales growth from its European projects.
In a trading update, the firm said revenue for the financial year to December 31, 2020, is expected to be “broadly in line with market expectations” with a loss “no lower than €4mln” before any one-off adjustments.
The company also said that following its interim results last September, the number of opportunities has grown to 75 from 41, an increase of 83%, while between July 2020 and February 2021 it has added non-contracted tender opportunities worth a total potential of €316mln for a total potential pipeline value of €657mln.
Looking ahead, EQTEC said it is aiming for considerable contracted sales growth from 6-8 projects in Europe, and that for 2021 revenues from inflight projects, new projects and gradual growth from maintenance and consulting contracts are forecast to be around €15mln with positive earnings (EBITDA), making 2021 its first profitable year.
The firm also said that the impact of the coronavirus (COVID-19), Brexit and forest fires are expected to subside throughout 2021 and there it expects “significant growth in the number, size and types of deals” over the year as well as further growth in 2022 and 2023 based on the deals in its pipeline.
"I am pleased with our progress to date - not only because amid a global pandemic crisis we grew the influence and reach of our business by further developing partnerships, pipeline and impact of EQTEC development capital, but also because of the increasing operational and managerial discipline we established”, EQTEC chief executive David Palumbo said in a statement.
“The business platform we now have in place is exactly what we set out to build and has grown our reach and impact toward building more advanced gasification plants in more markets with a greater, cleaner impact on local communities and greater returns for our shareholders. Supported by our strategic partners, we are better positioned than ever for growth and profitability in 2021 and beyond", he added.
Shares in EQTEC surged 17.6% to 2.2p in early deals on Monday, while MetalNRG jumped 9.6% to 0.8p.