MetalNRG PLC (LSE:MNRG) chief executive Rolf Gerritsen has said he is “delighted” with the progress on EQTEC PLC (AIM:EQT)’s waste-to-energy plant in Gallina, Italy, following today’s separate update from EQTEC that the plant is on track to begin commercial operations next month.
MetalNRG said the Italia MDC plant will be the first project under its collaboration agreement with EQTEC and will showcase the potential of the joint venture going forward and the role of each party, with MetalNRG taking the role of developer and EQTEC as technology partner and licensor.
The plant is expected to be a successful investment with sustainable profitability and rate of return, the company added.
An agreement to enhance the plant’s features, including producing biochar, required further investment of €1.45mln, in which MetalNRG did not participate.
As a result, MetalNRG’s stake in the project’s special purpose vehicle, EQTEC Italia MDC srl, has been diluted to 15.88%.
"I am delighted with the progress made by EQTEC on recommissioning the plant in Italy and look forward to working with the team going forward,” commented Gerritsen in a statement.
“The business model is more robust now that additional features have been added and securing the revenues from the biochar by-product will enhance revenues going forward," he added.