REG - EQTEC PLC - Bank Refinance of Italy Market Development Centre

EQTECAnnouncement

04/09/2023 07:00

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RNS Number : 1995L  EQTEC PLC  04 September 2023

04 September 2023

EQTEC plc

("EQTEC", the "Company" or the "Group")

 

Bank Refinance of Italy Market Development Centre

 

EQTEC plc (AIM: EQT), a global technology innovator powering distributed,
decarbonised, new energy infrastructure through its waste-to-value solutions
for hydrogen, biofuels, and energy generation, is pleased to confirm that it
has entered into a loan facility of €2.9 million (the "Facility") to
refinance its Italy Market Development Centre, located in Gallina, near
Castiglione d'Orcia, Tuscany, Italy (the "Plant").

 

The term of the Facility is 48 months, with an annual interest rate of 2.5%
over the six-month Euro Interbank Offered Rate (Euribor), which at the time of
announcement makes the interest rate c. 6.5%. The Facility is provided by
Banca del Fucino S.p.A. a historic private banking group based in Rome (the
"Lender"). The loan is guaranteed up to 80% by MedioCredito Centrale S.p.A.,
which is controlled by the Italian Ministry of Economy.

 

Provision of funds through the Facility is subject to the Plant's achievement
of certain performance criteria set by the Lender. Supported by EQTEC
engineers, EQTEC Italia MDC S.r.l. ("Italia MDC"), the operating company for
the Plant, is implementing a series of performance improvements anticipated to
be completed in early Q4 2023, at which point, assuming the required
performance criteria have been achieved, Italia MDC will draw down the amount
of the full Facility.

 

The Plant became operational in March 2023 and EQTEC completed handover
protocols and transfer of plant operations to Italia MDC in June 2023. The
Company remains actively involved with supporting Italia MDC in its endeavours
to drive more productive and continual operations.

 

David Palumbo, CEO of EQTEC, commented:

 

"The Facility indicates strong support for Italia MDC from a traditional
primary lender and represents trust in its shareholders and commitment to
supporting new energy infrastructure across Italy. We are committed to
supporting Italia MDC with continuous improvements that will ensure the Plant
remains a shining example of EQTEC technology in action."

 

This announcement contains inside information as defined in Article 7 of the
EU Market Abuse Regulation No 596/2014, as it forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018, as
amended, and has been announced in accordance with the Company's obligations
under Article 17 of that Regulation.

 

ENQUIRIES

 

 EQTEC plc                                              +44 20 3883 7009

 David Palumbo / Nauman Babar

 Strand Hanson - Nomad & Financial Adviser              +44 20 7409 3494

 James Harris / Richard Johnson

 Panmure Gordon - Broker                                +44 20 7886 2500

 John Prior / Hugh Rich

 Instinctif - Media & investor relations enquiries      EQTEC@instinctif.com (mailto:EQTEC@instinctif.com)

 Guy Scarborough / Tim Field                            +44 791 717 8920 / +44 788 788 4794

 

About EQTEC Italia MDC srl

 

EQTEC Italia MDC srl ("Italia MDC") is a company registered in Italy for the
purpose of transforming agricultural and forestry waste into electrical power
and biochar in a relatively remote and heaviliy agrarian community. The
Company currently owns 19.99% of Italia MDC, with an option to acquire further
equity in future.

 

Italia MDC owns and operates a 1.1 MWe plant in Gallina (the "Plant"), a
village near Castiglione d'Orcia in Tuscany's Val d'Orcia, an area considered
to be the region's most scenic. It is on a site originally owned by Toscana
Cereali Societa' Cooperativa Agricola, from whom Italia MDC is currently
leasing and with whom Italia MDC have agreed to purchase the land by 30 July
2024. With EQTEC technology at its core, the Plant is capable of converting
multiple types of biomass feedstock into electrical power and thermal energy.

 

Initially, the Plant is converting higher-density wood waste into electrical
power for export to the national grid, for which a connection has been secured
with a preferential tariff. In addition to the electricity, the Plant is
producing biochar for purchase by two European wholesalers of the product.
Thermal energy produced through the continuous EQTEC thermochemical conversion
process is being recycled to dry the feedstock, improving the Plant's
waste-to-energy conversion efficiency.

 

Feedstock is being delivered by multiple, local suppliers, and Italia MDC has
identified additional, potential suppliers in order to maintain continuity of
supply and leverage over cost and availability. Further, the Plant has been
upgraded to support lower-density feedstocks such as straw or other
agricultural waste. This ability to switch amongst feedstock types and
suppliers adds resilience to Italia MDC's business model.

 

About Market Development Centres (MDCs)

 

MDCs are reference plants that demonstrate EQTEC technology in live,
commercial environments, with application of EQTEC's versatile syngas to one
of four, target solution models: Industrial; Utility; Municipal; or
Agricultural. The Italia MDC is focused on the Agricultural solution model,
which demonstrates the potential for smaller-scale, autonomous plants in
remote areas to convert agricultural and forestry biomass into value for the
local community.

 

The Company has accommodated a number of visits to Italia MDC by prospective
investors and partners, since March, and has already scheduled a number of
further such visits, including with top-tier utilities companies,
infrastructure investors and a consortium of private investors with whom the
Company is in discussions towards funding and sale of equity in Croatia MDC.

 

The Company is targeting launch of the Croatia MDC later this year in
Belišće, Croatia, to demonstrate the Industrial solution model, converting
industrial waste from a nearby paper mill into electrical power and biochar,
returning the former to the paper mill and selling the latter on the open
market.

 

A third MDC is being pursued in eastern France that would demonstrate the
Utility solution model, helping utility companies decarbonise their plant
footprints and create new energy infrastructure for new lines of business in a
post-fossil fuel world.  The France MDC is expected to become operational in
2024.

 

About EQTEC plc

 

As one of the world's most experienced thermochemical conversion technology
and engineering companies, EQTEC delivers waste management and new energy
solutions through best-in-class innovation and infrastructure engineering and
value-added services to owner-operators. EQTEC is one of only a few technology
providers directly addressing the challenge of replacing fossil fuels for
reliable, baseload energy. EQTEC's proven, proprietary and patented technology
is at the centre of clean energy projects, sourcing local waste, championing
local businesses, creating local jobs and supporting the transition to
localised, decentralised and resilient energy systems.

 

EQTEC designs, specifies and delivers clean, syngas production solutions in
the USA, EU and UK, with highly efficient equipment that is modular and
scalable from 1MW to 30MW. EQTEC's versatile solutions process 60 varieties of
feedstock, including forestry waste, agricultural waste, industrial waste and
municipal waste, all with no hazardous or toxic emissions. EQTEC's solutions
produce a pure, high-quality synthesis gas ("syngas") that can be used for the
widest range of applications, including the generation of electricity and
heat, production of renewable natural gas (through methanation) or biofuels
(through Fischer-Tropsch, gas-to-liquid processing) and reforming of hydrogen.

 

EQTEC's technology integration capabilities enable the Group to lead
collaborative ecosystems of qualified partners and to build sustainable waste
reduction and green energy infrastructure around the world.

 

The Company is quoted on the London Stock Exchange's Alternative Investment
Market (AIM) (ticker: EQT) and the London Stock Exchange has awarded EQTEC the
Green Economy Mark, which recognises listed companies with 50% or more of
revenues from environmental/green solutions.

 

Further information on the Company can be found at www.eqtec.com
(http://www.eqtec.com/) .

 

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