REG - EQTEC PLC - Contract signed with Idex for FEED at France MDC

EQTECAnnouncement

17/08/2023 07:00

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RNS Number : 5645J  EQTEC PLC  17 August 2023

17 August 2023

 

EQTEC plc

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

 

 Contract signed with Idex for Front End Engineering Design at France MDC

 

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,
through its subsidiary EQTEC Iberia SLU, it has signed with French
infrastructure owner and utility company Idex Services ("Idex") a contract for
the Front End Engineering Design (the "FEED") (the "FEED Contract" or
"Agreement") at the Company's France Market Development Centre ("France MDC").

 

Under the FEED Contract, the Company has agreed its scope of services and an
execution plan to support all design work up to financial close.  The work
outlined in the FEED Contract is expected to start immediately and be
completed by December 2023.  The Company expects to receive c. €440,000 for
the full scope of FEED work.

 

The FEED will provide owner-operator Idex with all technical information
essential to achievement of Final Investment Decision ("FID") toward retrofit
and construction at the France MDC. The Company and Idex are targeting FID in
Q1 2024.

 

Assuming FID based on the current configuration, EQTEC will be the core
technology supplier for France MDC, receiving fees for engineering services,
equipment, commissioning and licensing over the period Q4 2023 - Q1 2025,
estimated to total c. €15 million.

 

Highlights

 

The scope of the FEED includes:

 

·    Validation of the end-to-end process defined during the preliminary
technical assessment in 2022;

·    Detailed analysis of the issues identified with the predecessor plant
and confirmation of EQTEC proprietary technology solutions for implementation
during retrofit and construction;

·     Confirmation of the plant layout within previously defined site
parameters;

·     Request for offers and clarifications from suppliers for ancillary
equipment to be replaced or renovated;

·     Supply of all plans and documents essential to the FEED;

·     Supply of technical specifications for equipment to be ordered and
supplied;

·     Provision of a detailed cost estimate for equipment and services;

·     Identification of construction risks and proposal of mitigations;

·     Establishment of a preliminary construction schedule for the project.

 

The Agreement follows the Company's announcement on 12 July 2023 that Idex had
acquired 95% of the share capital of Grande-Combe SAS ("Grande-Combe"), the
project company for the France MDC, together with the project to construct and
commission it.

 

The Agreement supports the Company's business strategy of working with
top-tier partners able to support the development, construction, commissioning
and operations of plants running EQTEC technology, so that the Company may
focus on executing its core capabilities of technology development and
engineering.

 

David Palumbo, EQTEC CEO, commented:

 

"We are pleased to be working with Idex on this second project together, which
is of particular importance to us as our France MDC. We appreciate the impetus
Idex has shown through its agreement of an ambitious schedule toward
completion of design and progression toward construction start by early 2024.
This third MDC for EQTEC and second project in partnership with Idex together
indicate growing demand from innovative, blue-chip partners and funders to
build and operate new energy infrastructure powered by EQTEC to futureproof
their operations."

 

Stephane Guillet, Idex Director of New Energy Vectors, commented:

 

"We are looking forward to completing all the engineering and developing work
required at Grand-Combe by year end so that we may progress to procurement and
construction early in 2024.  Our team is very familiar with the project's
potential and the local market dynamics, and we believe with our expertise and
resources we will be able to operate another successful plant that will be a
reference for this type of new energy infrastructure in France.

 

Idex is willing to grow its footprint in this domain and has selected EQTEC
technology to do so. We are delighted to cooperate with EQTEC, where EQTEC
technology enables Idex to propose attractive commercial terms to our
customers, paving the way for future developments to grow.

 

Idex is today the only vertically integrated market operator across the entire
energy value chain.  We engage in energy production from local and
carbon-free energy resources, energy distribution through heating and cooling
networks and up to energy optimisation of its final use in industrial,
residential and tertiary buildings."

 

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 the project

 

The project will see the replacement of core technology and relevant ancillary
equipment at an existing plant originally developed by Group Bonnefoy at its
stone quarry site located at Villers-sous-Montrond, Doubs, France, near the
Franco-Swiss border. The existing gasification plant was designed using
non-EQTEC technologies but was never fully commissioned, as the previous
technology did not successfully complete performance and endurance tests. As a
result, the previous project company, SPV Synnov Déchets SAS, entered
bankruptcy in November 2021, after which the Company was approached as a
potential buyer.

 

The Company on 14 March 2021 announced its intention to acquire, upgrade and
recommission the 6.5 MWe plant, replacing the failed gasification technology
with EQTEC technology. On 07 September 2022, the acquisition was approved and
finalised by France's Ministère de l'Économie, des Finances et de
l'Industrie (MINEFI). It is the Company's intention that the France MDC
process diverse feedstock, with a combination of wood, contaminated wood and
RDF and is expected to be France's largest ever gasification project for
combined heat and power.

 

About Idex

 

Founded in France in 1963, Idex develops, designs, finances, builds and
operates local energy and carbon-free infrastructure, which provides renewable
heat and local electricity supply to buildings, cities & industry.

 

With 5,700 employees and a turnover of €2 billion in 2022, Idex is currently
the only vertically integrated market operator delivering the complete value
chain for local energy provision. The Group is involved in the production of
thermal or electrical energy from local and low-carbon energy resources
(geothermal, solar, biomass, waste), the distribution of this energy through
district heating and cooling networks, to its final use in industrial,
residential and tertiary buildings and other applications.

 

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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