REG - EQTEC PLC - Italy Market Development Centre operational

EQTECAnnouncement

14/03/2023 07:00

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RNS Number : 8207S  EQTEC PLC  14 March 2023

14 March 2023

 

EQTEC plc

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

 

Italy Market Development Centre operational

 

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 its
Italy Market Development Centre ("MDC") is operational. EQTEC's technical
commissioning team has commenced handover protocols for transferring plant
operations to EQTEC Italia MDC srl ("Italia MDC"), the MDC's operating company
(the "Handover Protocols"). The Plant is the first of EQTEC's MDCs to become
operational.

 

The 1.1 MWe plant, located in Gallina, near Castiglione d'Orcia, Tuscany,
Italy (the "Plant") had already commissioned gasification and biochar
production capabilities in January 2023. On 8 March 2023, following
commissioning of the Jenbacher 612 engine, the Plant exported its first
electricity to the national power grid. To finalise calibration and
performance testing of the engine and to support Handover Protocols, a
representative of INNIO Jenbacher (Italia) will be on site from 15 March 2023.
Following completion of this work on the engine and before the end of March,
the Company expects to fully transfer plant operations to the Italia MDC
staff.

 

Additionally, Italia MDC is pursuing refinance of the plant asset by an
Italian bank. The technical advisor to the bank visited the plant in March to
complete a technical survey.  Subject, inter alia, to the finalisation of the
technical report, the Company expects that a funding agreement with the bank
will be completed during Q2 2023.

 

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 a number of scheduled visits to the Plant by prospective
investors and partners, starting in late March. The visits include a utilities
company, infrastructure investors and private investors with whom EQTEC plc is
in discussions towards securing funding and the 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.

 

David Palumbo, CEO of EQTEC, commented:

 

"Having our first MDC transitioning to live operations is a significant
catalyser to EQTEC's strategy of becoming a technology licensor for
distributed new energy infrastructure.  We cannot underestimate the
importance of the MDCs not only to incubate demand for our technology but also
to accelerate the timescales typically required from engagement to
transaction, with owner operators and funding sources. We expect a busy
schedule of site visits in the coming months, with strategic stakeholders
including utility companies and infrastructure investors."

 

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.

 

In addition to being a profitable, commercial-scale facility with an important
role in the local, agricultural community, the Plant is a Market Development
Centre for the Company, providing a showcase of EQTEC technology for
prospective clients including Industrial, Utility, Municipal or other
Agricultural clients looking to replicate success with sustainable,
waste-to-energy technology. The Company already has a number of prospective
clients scheduling time to visit Italia MDC in 2023.

 

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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