REG - EQTEC PLC - Update on Deeside project share purchase agreement

EQTECAnnouncement

01/03/2023 07:00

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RNS Number : 4206R  EQTEC PLC  01 March 2023

1 March 2023

 

EQTEC plc

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

 

Update on share purchase agreement for Deeside project

 

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 confirms that, further to the
Company's announcements on 30 June 2022 and 01 September 2022, Deeside WTV
Limited ("Deeside WTV"), a wholly-owned subsidiary of EQTEC, and Logik WTE
Limited ("Logik WTE"), a wholly-owned subsidiary of Logik Developments
Limited ("Logik") (the "Parties") have been unable to meet by the agreed
deadline all completion requirements specified under the share purchase
agreement signed by the Parties on 07 December 2020, and as amended by
supplemental agreements announced on 06 December 2021, 01 April 2022 and 30
June 2022 (the "SPA").

 

Under the SPA, the Parties set out to meet a number of objectives for
development of the Deeside project (the "Project") including the sale of Logik
WTE to one or more investors. Despite progress, a number of these objectives
remain outstanding, most notably the sale of Logik WTE. As announced by the
Company on 01 December 2022, after several months the Parties were unable to
reach mutually acceptable commercial terms with an initial investor, and the
Company is responding to interest from other prospective investors in the
Project.

 

While the SPA has not completed on the agreed date it remains in force and the
Parties continue to discuss constructive options for moving forward with
development of the Project, in line with the Company's stated business
strategy of focusing on high-margin technology and innovation services,
engaging partners and customers to develop and fund the capital projects that
will deploy EQTEC's technologies.

 

David Palumbo, CEO of EQTEC, commented:

 

"The Company remains highly committed to the Deeside project, to supporting
Toyota Motor Company and local communities in Flintshire with clean,
decarbonised solutions for waste management and energy generation. We are
working with Anaergia, Inc. as an important technology partner to bring the
best possible technologies to the site. Funding the Project remains a primary
focus and we believe that working with Logik and our other partners will help
us achieve our objective. We look forward to updating the market as the
Project develops."

 

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 Deeside project

 

The Deeside project (the "Project") comprises 6.27 hectares of land off
Weighbridge Road on Deeside Industrial Estate and adjacent to the Toyota
Deeside Engine Plant, in Flintshire, north Wales, UK, on a site that was
formerly a Gaz de France power station.

 

The prospective, multi-technology plant would include a material recovery
facility ("MRF") and anaerobic digestion ("AD") facility that would deploy
technologies from Anaergia, Inc. ("Anaergia"), with an advanced thermal
conversion ("ATC") facility that would deploy EQTEC's syngas technology.

 

The MRF would process 182,000 tonnes per year of municipal solid waste
("MSW"), separating recyclables and sending them off site for processing,
separating biogenic materials for processing at the AD facility and producing
refused-derived fuel ("RDF") from the remaining materials, including plastics,
for processing by the EQTEC ATC facility. The 2.0 MW AD facility would produce
5.5 million NM3 per year of biomethane, with 17,000 MWh of the gas (c. 29%)
exported to Toyota and the remainder exported to the national grid. The 9.9 MW
ATC facility would receive 77,000 tonnes per year of RDF from the MRF and
produce 77 - 87,000 MWh of electricity per year, of which 27,000 MWh (c. 35%)
would be exported to Toyota, with the remainder exported to the national grid.
There is additional potential to apply the ATC facility to production of
hydrogen, for which initial feasibility work has been undertaken.

 

At present, the Company is lead developer for the Project, in partnership with
Logik, which owns the land on which the Project is being developed. As
announced on 28 October 2021, Flintshire County Council's Planning Committee
resolved to grant planning permission for the proposed plant. The planning
authority's decision follows its prior approval of the site for the original
plan of a recycling and AD facility.

 

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

 

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 AIM Market (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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