EQTEC PLC (AIM:EQT) said its subsidiary, Haverton WTV, reached an agreement with Scott Bros to amend its existing, conditional land purchase agreement (LPA).
The LPA relates to Haverton acquiring land from Scott Bros on which a proposed up to 25 Megawatt electric (Mwe) waste gasification and power plant will be built in Billingham, said EQTEC.
A statement from the waste-to-energy specialist said the payment schedule has been amended for the LPA.
Now, the final payment of £8.09mln will be paid at the completion of the purchase, which must occur before or on 23 December 2022.
“Not only does this seek to release us from capital investment commitments, but once concluded accelerates progress with our business strategy, toward becoming exclusively a technology innovator and licensor,” said EQTEC chief executive David Palumbo.
So far, two payments totalling £510,000 were made in February 2021 and February 2022, meaning the total cost is £8.6mln.
Additionally, EQTEC said “the parties agree they will use all reasonable endeavours to agree and exchange an option to lease as soon as practicable and in any event within eight weeks” from today.
All other details of the LPA remain the same, which include the development and financing of the project and gaining relevant permits.
EQTEC, Haverton and Scott Bros will also seek agreement on segregation of the land ownership from the project to “broaden funding and sale options of the project”.
“Accordingly, the parties intend to agree the grant of an option to lease for the letting of the property by Scott Bros to Haverton WTV in respect of the development and operation by Haverton WTV,” a statement said.