REG - EQTEC PLC - Collaboration Framework Agreement

EQTECAnnouncement

17/04/2023 14:30

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RNS Number : 4712W  EQTEC PLC  17 April 2023

17 April 2023

 

EQTEC plc

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

 

Collaboration Framework Agreement for waste-to-RNG projects in Italy

 

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 announce that it
has entered into a Collaboration Framework Agreement (the "CFA") with Poseidon
LNG Hub Srl ("PLH"), a sister company of Belleli Group, an energy technology
project developer with extensive global expertise in engineering, construction
and operations of large petrochemical and power plants, with interests in the
LNG, RNG and green fuels sectors.

 

Under the terms of the CFA, the Company and PLH will jointly target and pursue
market opportunities in Italy for collaborative development and deployment of
clean, waste-to-RNG and waste-to-hydrogen solutions and delivery of related
projects.

 

Highlights

 

·     PLH has identified and selected four, potential initial locations in
a portfolio of projects (the "Colibrì Plants") through engagement with the
province of Cremona, northern Italy, in the following locations: Corte dei
Frati, Piadena, Castelverde and Cremonese Grumello;

·     Each plant in the portfolio, if developed, is expected to be capable
of transforming c. 100,000 tonnes of mixed waste and biomass into RNG and
other green biofuels;

·     PLH, in its capacity as lead integrator and developer, has carried
out in-depth, technical due diligence and subsequently selected expert
companies to design and implement specific scope for each Colibrì Plant,
based on the specialist field of expertise of each service provider / partner.
EQTEC was selected to join the consortium as the exclusive syngas technology
partner;

·     Other companies in the consortium include: Linde plc, Wood plc, Alfa
Laval AB and Chemprod Srl;

·     PLH is to be solely responsible for securing funding for the Colibri
Projects with no contribution required from EQTEC. PLH is already in advanced
discussions with a number of international banks, public funds and equity
partners for funding of the pipeline; and

·     The first project, located in Corte dei Frati, is expected to reach
full permitting for construction in 2023 and financial close in H1 2024. EQTEC
intends to generate from the project engineering services, technology sales,
licensing fees and other value added services.

 

The CFA was originated inside the scope of the Company's existing, strategic
collaboration agreement with Wood, aimed at expanding availability and
application of EQTEC's synthesis gas ("syngas") capabilities into new markets,
combining it with Wood's established VESTA methanation technology, engineering
capabilities and capacity for scale.

 

The CFA supports the Company's business strategy of becoming a global
technology licensor and is an important step toward demonstrating EQTEC's
capabilities with application of its versatile syngas technology to a variety
of applications, especially RNG. It builds on the steam-oxygen capabilities
installed by EQTEC in 2022 at its R&D facility hosted by the Université
de Lorraine in France and on the profile enjoyed by EQTEC in the sector
following the award of two projects in France at Gardanne and at Limoges, both
announced in March 2023. It also builds on the RNG trials targeted for
investment by the Company from the recent fundraise announced on 21 March
2023.

 

David Palumbo, EQTEC CEO, commented:

 

"This agreement further cements EQTEC's position as a leading syngas
technology company within a consortium of leading, global companies with
complementary capabilities. The RNG market in Europe shows substantial growth
potential, as the continent moves to set feed-in tariffs later this year,
supported even further by the anticipated announcement from European Sovereign
funds toward acceleration of project financing. EQTEC is already pursuing
several RNG opportunities and is well placed to seize new opportunities
created by the current momentum toward RNG.

 

We are extremely pleased to work with Poseidon, which brings extensive
experience in development, construction, and operations of complex chemical
process infrastructure around the world. We are excited by the know-how to be
developed through this collaboration and look forward to a relationship that
creates new revenue opportunities whilst accelerating the adoption of new
energy infrastructure."

 

Luigi Conte, Poseidon LNG Hub Srl President, commented:

 

"We are passionate to build a future of energy infrastructure projects that
apply business integrity with social responsibility. Our commitment is to
deliver successful projects through an integrated, innovative project
philosophy. We developed and engineered the first LNG floating terminal in the
world and now with this collaboration with EQTEC we will continue to innovate
syngas-to-RNG applications from non-fossil fuel feedstocks.

 

By combining EQTEC's and Wood's breakthrough technologies and leveraging our
combined capabilities, this collaboration will provide the opportunity to
innovate and create solutions to support the path to net zero."

 

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 Belleli Group

 

Belleli Group ("BG") is an engineering, construction and operations group of
companies covering the full energy chain infrastructure onshore and offshore.
BG is active in engineering, project management, procurement, construction and
O&M services globally, for international projects in Oil & Gas
(onshore and offshore), Power, Water and Infrastructure, backed by 70 years'
experience in more than 50 oil refineries and 40 petrochemical plants.

 

BG is committed to developing innovative technology for complex projects, with
the most advanced solutions, while protecting the environment and promoting
local content and community social development, with the support of BEI
(Belleli Engineering & Infrastructures), supplying value-added services:
feasibility studies, conceptual engineering, preliminary design, basic design,
detail engineering, construction management, commissioning. BG is a top
partner for added value solutions in the energy and water industry through
advanced technology. Further information on BG can be found at
(http://www.bg-belleligroup.com/index.html
(http://www.bg-belleligroup.com/index.html) )

 

About Poseidon LNG Hub Srl

 

Poseidon LNG Hub Srl ("PLH") is a sister company of BG, acting as energy
technology project developer and integrator, specifically active in LNG, RNG,
green fuels and other green energy projects. PLH draws on the extensive
experience, resources and the network of BG to establish consortia with top
global partners for delivery of new energy infrastructure.

 

About EQTEC plc

 

As one of the world's most experienced gasification technology and engineering
companies, with a growing track record of delivering operational and
commercial success for transforming waste-to-energy through best-in-class
technology innovation, engineering and project development, EQTEC brings
together design innovation, project delivery discipline and solid commercial
experience to add momentum to the global energy transition. 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, supplies and builds advanced gasification facilities in the UK,
EU and US, with highly efficient equipment that is modular and scalable from
1MW to 30MW. EQTEC's versatile solutions process over 50 varieties of
feedstock, including forestry wood waste, vegetation and other agricultural
waste from farmers, industrial waste and sludge from factories 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 synthetic 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 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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