EQTEC PLC (AIM:EQT) and its partners have signed non-binding heads of terms agreements for the potential sale of their Deeside waste reception plant, anaerobic digestion facility and gasification facility to a currently undisclosed publicly quoted corporate investor.
The investor is expected to acquire 100% of the project development company Deeside WTV along with acquiring an option to 100% of Logik WTE Limited, which is the land company, for a total of £15mln.
EQTEC will be due £5.5mln for development services fees, payable in instalments, up until the end of H1 2023 – meanwhile, the deal consideration would similarly be paid across two tranches.
"The Deeside project has gathered significant momentum and once funded should progress steadily toward financial close,” said chief executive David Palumbo.
“We have top-tier partners working with us, strong support from local stakeholders and our feedstock and offtake arrangements ready to contract. In addition to being an exciting, multi-technology plant, Deeside will also be one of our first RDF plants and we believe the most efficient RDF-to-energy plants we know.
“We are also happy to formally focus EQTEC's role on our core capabilities of technology development and engineering, with a degree of broader project development as required to support the project.
“Not only does this release us from capital investment commitments that come with sustained SPV ownership, but it accelerates progress with our business strategy, toward becoming exclusively a technology innovator and licensor."