REG - EQTEC PLC - Equipment Supply Agreement for Plant in USA

EQTECAnnouncement

07/12/2023 07:00

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RNS Number : 9508V  EQTEC PLC  07 December 2023

07 December 2023

 

EQTEC plc

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

 

New contract for engineering toward waste wood-to-electricity plant in
California, USA

 

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 signed an equipment supply agreement for engineering services and
equipment supply (the "Agreement") for a plant in Wilseyville, California, USA
that is being developed to cleanly convert approximately 25,000 tonnes per
year of wood waste into synthesis gas ("syngas") to fuel a gas engine coupled
to alternators for production of c. 3.0 MWe electricity (the "Plant"). The
Plant would also produce c. 2,400 tonnes per year of saleable biochar for
agricultural and other uses.

 

The Agreement is with Blue Mountain Electric Company LLC ("BMEC"), a project
company set up and operated by Phoenix Biomass Energy, Inc. ("Phoenix"), a
developer of renewable energy projects in California, especially in the Sierra
and Central Valley where forest fires are prevalent, and where fire prevention
is aided by the clearing and clean, safe disposal of forestry waste wood.
Along with the Company, Phoenix is also one of three equity shareholders in
the 2.0 MWe North Fork, California plant where the Company is also driving for
commercial operations. The BMEC and North Fork projects apply similar EQTEC
designs and capabilities and represent the first two in an expected series of
potential, future projects for Phoenix and EQTEC in California.

 

The Company expects to commence basic engineering work in early 2024 and to
invoice c. $330,000 (c. €302,000) for this work, which the Company expects
to complete in the first half of 2024. The Company and BMEC have also agreed a
comprehensive quotation to deliver detailed engineering, equipment,
construction advisory and commissioning services for approximately $10.3
million (c. €9.4 million), should, inter alia, the requisite funding be
secured by BMEC to enable the project to proceed. The Company will make
further announcements if and when any work beyond basic engineering is agreed.

 

Jeff Vander Linden, Group COO, commented:

 

"We are pleased to finally execute this contract with BMEC. The opportunity to
support forest fire prevention in California through the application of EQTEC
technology for clean, safe disposal of forestry waste has long been an
ambition for us. The Project has secured credible funding from national and
state funding sources as well as private lenders, so we feel this work can
proceed successfully. Although the North Fork project has taken much longer
than we have liked, it has also allowed us to learn and improve project
execution. It is on this basis that we very much look forward to pressing
ahead with our second project in California."

 

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 / Jeffrey Vander Linden

 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

 Fortified Securities - Broker                  +44 20 3411 7773

 Guy Wheatley

 Panmure Gordon - Broker                        +44 20 7886 2500

 John Prior / Hugh Rich

 

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 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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