REG - EQTEC PLC - Completion of Italy MDC handover

EQTECAnnouncement

22/06/2023 13:00

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RNS Number : 6247D  EQTEC PLC  22 June 2023

22 June 2023

 

EQTEC plc

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

 

Completion of Italy Market Development Centre handover

 

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, at its Italy Market Development Centre ("MDC"), located in Gallina, near
Castiglione d'Orcia, Tuscany, Italy, completed handover protocols and transfer
of plant operations to EQTEC Italia MDC srl ("Italia MDC"), the operating
company.

 

This follows the Company's 14 March 2023 announcement that the Italia MDC was
operational, having commenced export of electricity to the national power grid
on 08 March 2023 and having produced biochar and commenced gasification in
January 2023.  The Italia MDC is the first of EQTEC's MDCs to be operational.

 

Additionally, Italia MDC is pursuing refinance of the plant asset by an
Italian bank, which is expected to complete during Summer 2023.

 

David Palumbo, CEO of EQTEC, commented:

 

"We are pleased to see the operating company now fully in charge of our first
MDC. The syngas quality and composition we are measuring there is
exceptionally high, and we are confident that EQTEC Italia MDC srl will
benefit from the high performance of both electricity and biochar this will
allow. We have already made good use of the MDC for a range of site visits
including with prospective clients and investors and foresee many further
visits well into the future. It is very rewarding to see EQTEC technology at
the heart of a successful plant operation, supporting the local community. As
we move on to operate successive MDCs and other plants, we anticipate seeing
EQTEC at the heart of baseload energy solutions for Agricultural, Municipal,
Industrial and Utility clients across Europe and around the world."

 

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 owned by Toscana Cereali
Societa' Cooperativa Agricola, from whom Italia MDC is leasing. 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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