EQTEC PLC (AIM:EQT) told investors that its subsidiary Southport WTV has signed a deal to take full ownership of the Southport Hybrid Energy Park project.
The deal is with Rotunda Group Ltd and sees Southport acquire the Shankley Biogas business unit, which holds the interest in the project. It sees Shankley pay an initial consideration of £382,000, from which a preceding £100,000 exclusivity fee is deducted.
"I'm delighted that EQTEC is taking another RDF-to-energy project in the UK to the next stage of development,” said David Palumbo, EQTEC chief executive.
“In signing this agreement to acquire the project SPV [special purpose vehicle] for Southport, we are closer to bringing an innovative and sustainable type of waste-to-energy facility to the local community, where we will source excess municipal, commercial and industrial waste from the surrounding area and convert it with our Advanced Gasification Technology into green electricity.
“The transaction also supports our strategy to incubate innovative energy transition projects applying EQTEC technology, to then sell forward and bill for our development services, technology solutions and maintenance."
EQTEC’s Southport unit, as part of the deal, has agreed to issue Rotunda a fixed dividend share that will see it receive 20% of distributable profits in Southport WTV Ltd.
The waste-to-energy company announced last September that it had an exclusive option to take full ownership of the Southport Hybrid Energy Park project from a local company, Rotunda Group.
In Southport, the project is approved for a waste recycling facility, an anaerobic digestion facility, and 9 megawatts (MW) of electrical generation with 2MW of battery storage – the project is envisaged to include the use of EQTEC’s advanced gasification technologies.