REG - EQTEC PLC - Deeside RDF Project Development Update

EQTECAnnouncement

01/04/2022 07:00

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RNS Number : 8614G  EQTEC PLC  01 April 2022

1 April 2022

 

EQTEC plc

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

 

Deeside RDF Project Development Update

 

EQTEC plc (AIM: EQT), a world-leading technology innovation company enabling
the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and
other energy production, is pleased to announce that EQTEC's wholly owned
subsidiary, Deeside WTV Limited ("Deeside WTV") has signed a binding
supplemental agreement (the "Supplemental Agreement") with Logik Developments
Limited ("Logik"). The Supplemental Agreement, inter alia, sets out the terms
on which Logik and Deeside WTV (together, the "Parties") have agreed to vary
the terms of the share purchase agreement signed by the Parties on 7 December
2020, as amended by the supplemental agreement announced on 6 December 2021
(the "Existing SPA").

 

Key terms of the Supplemental Agreement

 

·    Deeside WTV will acquire 32% of the share capital of Logik WTE
Limited (the "Project SPV"), the entity which holds the land and necessary
planning permissions for the Deeside RDF project (the "Project"), with the
consideration to be satisfied by the settlement of advances from the Group to
Logik and the Project SPV in an amount of c. £2.3 million;

·    Completion of Deeside WTV's acquisition of the interest in the share
capital in the Project SPV is subject to third party consent and is expected
to complete on or before 30 June 2022;

·    Parties are in discussions to procure a buyer for the Project SPV at
a minimum valuation of £15 million. Subject to the sale of the Project SPV,
EQTEC will invoice up to £2 million for its project development services to
the Project SPV (such fee to be reduced on a pound for pound basis if the
investment received is less than £17 million), subject to certain conditions
to be finalised and agreed as part of ongoing discussions with potential
buyers; and

·    While the amendment of the Existing SPA to extend the completion date
to 30 June 2022 is immediately effective, the Parties have agreed to act in
good faith and to use all reasonable endeavours to implement the additional
undertakings and agreements in the Supplemental Agreement as summarised in
this announcement, including to amend the terms of the Existing SPA and to
finalise other necessary documentation such as a shareholders' agreement for
the Project SPV.

 

Project progress

EQTEC has appointed Black and Veatch, a global engineering, procurement,
consulting and construction company specialising in sustainable infrastructure
development, to conduct a peer review of the overall Project, including the
technology interfaces within the Project. The Group is also in advanced
commercial and contractual discussions to appoint Black and Veatch for the
full detailed design for phase 2 of the Project.

 

Discussions with technology partners have progressed with EQTEC having
provided all the concept design and syngas specifications to the shortlisted
candidates to provide their technical and commercial proposal for the
downstream technology to convert syngas into hydrogen.

 

EQTEC has joined the Deeside Decarbonisation Forum, in partnership with
Uniper, Eni, Wales & West Utilities, Triton Power and Uchelgais Gogledd
Cymru (Ambition North Wales), an open forum to help catalyse and accelerate
the decarbonisation of the region.

 

Ongoing discussions with development and infrastructure investors, as well as
owner-operators for a minimum of £15 million sale of the Project SPV are
progressing with a number of parties engaged at due diligence stage.

 

Further information about the Project

 

EQTEC is lead developer and technology provider for the Project in partnership
with Logik and Anaergia Inc. through the Project SPV. As announced on 28
October 2021, Flintshire County Council's Planning Committee has resolved to
grant planning permission for the proposed 9.9 MWe plant to enable a complete
and local waste-to-energy solution, combining a 182,000 tonne waste reception
plant along with 2 MW anaerobic digestion ("AD") and EQTEC Advanced
Gasification Technology. The planning authority's decision follows its prior
approval of the site for the original plan of a recycling and AD facility.
Additionally, through the Project, EQTEC and Toyota are exploring an
innovative, circular and sustainable waste-to-energy solution for Toyota's
engine manufacturing plant in Deeside. The site is currently on 6.27 hectares
of land off Weighbridge Road on Deeside Industrial Estate, one of Europe's
largest such industrial sites. The Project site is wholly owned by the Project
SPV (acquired December 2020) and was formerly a Gaz de France power station.

 

The Project is one of three waste-to-energy/fuel projects that the Group is
developing in the UK, including at Billingham, Teesside and Southport,
Merseyside.

 

This announcement contains inside information as defined in Article 7 of the
EU Market Abuse Regulation No 596/2014 and has been announced in accordance
with the Company's obligations under Article 17 of that Regulation.

 

ENQUIRIES

 EQTEC plc                                                     +44 203 883 7009
 David Palumbo / Nauman Babar

 Strand Hanson - Nomad & Financial Adviser                     +44 20 7409 3494
 James Harris / James Dance

 Arden Partners - Joint Broker                                 +44 20 7614 5900
 Paul Shackleton (Corporate) / Simon Johnson (Sales)

 Canaccord Genuity - Joint Broker                              +44 20 7523 8000
 Henry Fitzgerald-O'Connor / James Asensio / Patrick Dolaghan

 Alma PR - Financial Media & Investor Relations                +44 20 3405 0205
 Josh Royston / Sam Modlin / Matthew Young                     EQTEC@almapr.co.uk (mailto:EQTEC@almapr.co.uk)

 BECG - General Media Enquiries                                +44 7554 014 188 / +44 7867 452 269
 Carrie Lowe / Tom Gosschalk                                   EQTEC@BECG.com (mailto:EQTEC@BECG.com)

 

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) .

 

About Anaergia

Anaergia was created to eliminate a major source of greenhouse gases ("GHGs")
by cost effectively turning organic waste into renewable natural gas ("RNG"),
fertilizer and water, using proprietary technologies. With a proven track
record from delivering world leading projects on four continents, Anaergia is
uniquely positioned to provide end-to-end solutions for extracting organics
from waste, implementing high efficiency anaerobic digestion, upgrading
biogas, producing fertilizer and cleaning water. Our customers are in the
Municipal Solid Waste, Municipal Wastewater, Agriculture, and Food Processing
industries. In each of these markets Anaergia has built many successful plants
including some of the largest in the world. Anaergia owns and operates some of
the plants it builds, and it also operates plants that are owned by its
customers.

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