REG - EQTEC PLC - Complementary strategic expansion

EQTECAnnouncement

14/01/2026 07:00

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RNS Number : 7733O  EQTEC PLC  14 January 2026

 

14 January 2026

EQTEC plc

("EQTEC" or the "Company")

 

Complementary strategic expansion

Waste to value technology remains the foundation for diversified growth

Lenders supporting strategy progression

 

EQTEC plc (AIM: EQT), a provider of syngas technology and engineering services
for the clean conversion of waste into sustainable energy and biofuels,
announces a strategic update: the Company is building on its gasification
foundation with a vertically integrated, capital-light strategic expansion
into complementary assets central to global electrification, supported by
constructive lender engagement on the progressive strategy.

Waste-to-value Technology Platform

EQTEC's proprietary gasification technology - which converts waste and
low-value biomass into syngas, power, heat and renewable fuels without
incineration - remains the cornerstone and focus of the Company's long-term
strategy. The technology addresses three structural market needs
simultaneously: decarbonisation, landfill diversion and energy security.

The Board remains confident that, over time, a portfolio of commissioned
reference plants will unlock scalable, repeatable commercial returns. With
several material project wins anticipated near-term, the Company is now
building on this foundation by seeking to add complementary exposure to
circular economy materials which are central to global
electrification-introducing the potential for earlier cash-flow inflection
points while the gasification pipeline matures.

Progressive Strategy: Supply Chain Exposure

EQTEC is expanding into the acquisition and development of capital-light
resource assets, targeting exposure to critical and precious metals central to
global electrification-including copper, gold, rare earth elements and
specialty resources essential to grid infrastructure and the energy transition
- while progressing with its core strategy, gasification technology.  Recent
leadership appointments with extractive industry backgrounds have enabled the
acceleration of this strategic broadening.

The strategic rationale includes:

·      Shared end markets: Critical metals and EQTEC's gasification
technology serve the same structural demand drivers-renewable power,
electrification and energy storage. The Company's waste-to-value solutions
support distributed, low-carbon generation; critical metals supply the
infrastructure those systems require.

·      Circular economy coherence: Both business lines align with
circular economy principles. Gasification diverts waste and displaces fossil
fuels; responsibly developed metals enable the hardware underpinning
decarbonisation. Together, they position EQTEC across complementary segments
of the energy transition value chain.

Rationale: Near-Term Cash Flow, Disciplined Entry

The Company believes that selective exposure to resources complementary to its
core strategy can provide multiple new value-creation and cash-flow inflection
points during the period in which gasification projects progress from
development to full operational scale. For example, critical metals assets
typically offer shorter development timelines, defined operational milestones
and earlier revenue generation than large-scale infrastructure projects. For
EQTEC, this vertically-integrated strategy creates the potential for multiple
cash-flow inflection points during the period in which gasification projects
progress toward full commercial operation with recurring revenues.

EQTEC will prioritise sustainable opportunities that are:

·      Cash generative or near-term production

·      Capital-light at entry with limited upfront commitment

·      Situated in established, lower-risk mining jurisdictions

·      Positioned for value uplift through operational discipline

The Company already has an active pipeline under evaluation.

Lender support

The Company confirms that its lenders are supportive of the strategic
broadening outlined above and that it is in advanced discussions with them
regarding a comprehensive restructuring of the Company's existing debt
facilities with the objective of materially deleveraging the balance sheet,
improving liquidity and aligning the capital structure with the Company's
focus on developing a complementary near-term cash-flow profile alongside its
longer-term growth objectives.

These discussions are ongoing and there can be no certainty as to final terms
or achievement of a definitive restructuring; however, the Board believes that
the alignment between lenders and the Company on its broadened strategy is
constructive and supportive.

Board Update

David Palumbo has informed the Board that, following the proposed strategic
expansion of EQTEC's activities, he believes the time is right to transition
the Chairmanship to a successor with direct experience across both technology
and complementary asset resources. Mr Palumbo will therefore transition to Non
Executive Chairman with immediate effect and remain as Chairman until a
suitable appointment is made, ensuring continuity and an orderly handover.

James Parsons, Chief Executive Officer of EQTEC, commented:

"Since joining EQTEC, my focus has been on sharper execution, capital
discipline and commercial outcomes, and that remains unchanged. I am confident
in the medium-term potential of our gasification technology and team and in
its ability to deliver scalable returns as multiple reference plants come
onstream.

At the same time, the opportunity set in sustainable complementary critical
and precious metals is significant. Selective, capital-light exposure allows
us to balance the portfolio and introduce nearer-term value inflexion points
while remaining aligned with the same electrification and decarbonisation
drivers. This leverages off my experience building, financing and operating
asset-backed energy transition businesses with a clear focus on returns-while
gasification continues to mature as the long-term value engine of the Group."

Further announcements will be made as appropriate.

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 

 James Parsons

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

 James Harris / Richard Johnson 

  
 Global Investment Strategy UK Ltd - Broker       +44 20 7048 9045 

 Samantha Esqulant 

  

 

 

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