REG - EQTEC PLC - Update on Deeside Project

EQTECAnnouncement

01/09/2022 07:00

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RNS Number : 8516X  EQTEC PLC  01 September 2022

 

1 September 2022

EQTEC plc

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

 

Update on Deeside Project Share Purchase Agreement and Sale of Project

Issue of Equity and Director Shareholding correction

 

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 confirms that, further to its announcement on 30 June
2022, Deeside WTV Limited ("Deeside WTV"), a wholly owned subsidiary of EQTEC,
and Logik Developments Limited ("Logik") are in advanced discussions with a
third party for the sale of the Project*. To facilitate the transaction an
agreement to further extend the date ("Long Stop") for completing the share
purchase agreement signed by Deeside WTV and Logik on 7 December 2020 (as
amended by the supplemental agreement announced on 6 December 2021 and further
amended by the supplemental agreements announced on 1 April 2022 and 30 June
2022) (the "SPA"), will be required. The extension to the SPA Long Stop is
expected to be incorporated in the heads of terms  of the intended sale
transaction ("HoTs") which the parties expect to enter into by the end of
September 2022, although there can be no certainty the HoTs will complete. The
Company will update the market accordingly.

 

* The SPA relates to the currently approved 182,000 tonne waste reception
plant along with 2 MW anaerobic digestion facility and a 9.9 MWe EQTEC
Advanced Gasification Technology facility, (the "Project") at Deeside,
Flintshire, UK.

 

 

Project progress

 

The Company is in advanced stages of discussions with Toyota Motor
Manufacturing (UK) Limited, a global vehicle manufacturer, on heads of terms
for the supply of gas and electricity to their Deeside Engine Plant from the
Project.

 

Deeside WTV has also received updated head of terms (subject to contract) for
gas and power offtake from TotalEnergies, a broad energy company that produces
and markets energies on a global scale, with new tariffs which significantly
improve project economics.

 

Discussions with shortlisted technology partners and EQTEC are ongoing, in
order that the selected companies can provide their technical and commercial
proposal for the downstream technology to convert syngas into hydrogen.

 

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 tonnes 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.

 

Issue of Ordinary Shares to strategic providers

 

The Company further announces that it is proposing to issue, in aggregate,
20,100,000 new Ordinary Shares (the "Supplier Shares") to certain strategic
service providers providing business development and advisory services to the
Group in satisfaction of fees due to them. The issue of the Supplier Shares
will further align the interests of strategic advisers and service providers
with those of the Company and its shareholders.

 

Admission

 

Application will be made to the London Stock Exchange for the Supplier Shares,
which will rank pari passu with the Company's existing Ordinary Shares, to be
admitted to trading on AIM ("Admission"). Dealings in the Supplier Shares are
expected to commence on 8.00 a.m. on 6 September 2022.

 

Following Admission, there will be 9,401,782,212 Ordinary Shares in issue.
This number may be used by shareholders as the denominator for the calculation
by which they will determine if they are required to notify their interest in,
or a change in their interest in, the share capital of the Company.

 

Director Shareholding Correction

 

Reference is made to RNS 4623S of the Company issued at 7.00 a.m. on 14 July
2022 in which the resultant shareholding and percentage for Thomas Quigley,
Non-executive Director, should have been 35,054,154 shares and 0.37%
respectively.

 

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                                                     +44 203 883 7009
 David Palumbo / Nauman Babar

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

 Arden Partners - Joint Broker                                 +44 20 7614 5900
 Ruari McGirr (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                                     EQTEC@almapr.co.uk (mailto:EQTEC@almapr.co.uk)

 Instinctif - General Media Enquiries                          +44 (0) 20 7457 2381 / +44 (0) 7887 884794
 Chris Speight / Tim Field                                     EQTEC@instinctif.com (mailto:EQTEC@instinctif.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/) .

 

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