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(Alliance News) - Eqtec PLC on Wednesday said it has acquired a waste-to-energy plant in Belisce, Croatia through Synergy Projects as part of its joint venture Sense ESCO.
Shares in Eqtec were trading up 8.5% at 1.41 pence each in London on Wednesday.
Gasification and engineering company Eqtec said the plant is built around its proprietary advanced gasification technology and can produce 1.2 megawatts of electricity from around 8,000 tonnes per annum of locally-sourced wood chips and forestry waste.
"The plant in Belisce, which will also be a market development centre, is the next of several EU waste-to-value facilities we are developing to integrate our leading-edge technology and overseeing through commissioning into live operations," added Chief Executive David Palumbo.
According to Eqtec, the plant is likely to generate a 12% unlevered internal rate of return and annual earnings before interest, tax, depreciation and amortisation over EUR850,000.
Technology sales and engineering upgrades for the plant are expected to have a contract value of around EUR1.7 million, the company added.
Eqtec said the plant acquisition has been funded through a EUR550,000 loan and a EUR1.7 million 10-year third-party loan, which it expects to convert into privately placed bonds to meet local corporate requirements.
The venture plans to apply for a grid connection for the Croatian plant in the second half of 2021.
By the end of 2022, Eqtec expects the plant to be updated, recommissioned and re-powered for operations.
Currently, the joint venture is entirely owned by Eqtec. However upon completion 20% equity will be passed to Sense ESCO, with a further 20% to be transferred pending certain performance milestones.
By Scarlett Butler; scarlettbutler@alliancenews.com
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