EQTEC PLC (AIM:EQT) said its Deeside WTV subsidiary has signed a binding supplemental agreement with Logik Developments relating to a previously agreed share purchase arrangement.
Under the terms of the supplemental agreement, Deeside WTV will acquire 32% of the share capital of Logik WTE Limited, the entity that holds the land and necessary planning permissions for the Deeside RDF (refuse-derived fuel) project, with the consideration to be satisfied by the settlement of roughly £2.3mln of advances from EQTEC to Logik and Logik WTE.
Completion of Deeside WTV’s acquisition of the interest in Logik WTE is expected to complete in the first half of this year.
Deeside WTV and Logik Developments are in talks to procure a buyer for Logik WTE at a minimum price of £15mln, with a number of interested parties currently doing due diligence on the project.
EQTEC said that while the existing share purchase agreement (signed in December 2020) is immediately effective, Deeside WTV and Logik Developments have agreed to act in good faith and to use all reasonable endeavours to implement the additional undertakings and agreements in the supplemental agreement and to finalise other necessary documentation such as a shareholders' agreement for Logik WTE.
EQTEC has appointed Black and Veatch, a global engineering, procurement, consulting and construction company specialising in sustainable infrastructure development, to conduct a peer review of the overall project, including the technology interfaces within the project. The group is also in advanced commercial and contractual discussions to appoint Black and Veatch for the full detailed design for phase 2 of the project.
Discussions with technology partners have progressed with EQTEC having provided all the concept design and syngas (synthetic gas) specifications to the shortlisted candidates to provide their technical and commercial proposal for the downstream technology to convert syngas into hydrogen.
The Deeside RDF project is one of three waste-to-energy/fuel projects that the group is developing in the UK; the others are at Billingham, Teesside and Southport, Merseyside.