RE: RDF - 62 different kinds of feedstock4 May 2024 12:36
Welcome 30silver!
Regarding the insurance mentioned previously by Trytrytryagain, fyi I've copied below some details taken from Arden's initiating coverage report, June 2020. Arden were EQTEC's broker at the time. Don't know who the insurer is though....
"Due to the commercial nature of its technology and the highly reliable operating history of its plants, EQTEC is able to offer its customers warranties on the performance of its gasification technology and an international insurance underwriter will insure these warranties.
This has material significance in providing customers with confidence around the soundness of its technology and increases accessibility and ease of securing financing from lending institutions or other providers of energy infrastructure investment.
EQTEC typically offers its customers the following warranties:
1. Commissioning Performance Test
Following the completion of construction, a plant undergoes a cold and hot commissioning process, prior to handover to the customer. A 48-hour performance test is carried out to an international set of standards. If for any reason the performance test fails to meet the necessary prescribed operating performance (for example, due to a fault with one of the equipment modules or the failure to meet a specification for plant availability, syngas composition or syngas purity), EQTEC offersto replace any parts or to adjust the system up to 15% of the total capex value of the plant. With insurance, 90% of the value of the plant is covered in the event of a failure of a commissioning performance test.
As a matter of fact, EQTEC’s equipment has never failed a commissioning performance test - but such warranties and insurance provide a high level of comfort to customers and partiers engaged in financing the plants.
The insurance premium costs the equivalent of approximately 5% of the capex of the plant. 10% is deductible and insurance covers 90% of the capex value.
2. Performance warranties on the first 6-24 months of plant operations
EQTEC offers performance warranties on between 6 to 24 months of operations following commissioning, depending on a customer’s demands. Such performance guarantees are also important to parties engaged in the funding of plants.
Performance benchmarks are based on projections of a project’s financial model, and include attributes such as kilowatt hours of electricity and heat generation (which is determined by syngas output and purity), system availability and ultimately the revenue generated by the operation of the plant.
Insurance covers revenues generated from the plant and its ability to meet debt service ratios of the lender(s) that financed the plant. Debt service ratios commonly require the plant to always generate above 80% of forecasted benchmark revenues.