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(Sharecast News) - Eqtec announced on Monday that, alongside infrastructure owner Idex, it has been awarded a project to develop a plant in Nouvelle-Aquitaine, France.
The AIM-traded firm said the Limoges Métropole local authority chose the companies through a competitive tender and panel interview process that ended late last year.
It said the plant was expected to convert up to 45,000 tonnes of mixed waste per year, including contaminated wood waste, into up to nine million normal cubic metres of renewable natural gas (RNG) per year.
The project was expected to support Eqtec's strategy, and demonstrate its synthesis gas technology's capabilities in various applications, including RNG.
It would also build on the waste-wood conversion capabilities of its France market development centre in Villers-sous-Montrond, and on the steam-oxygen capabilities installed in 2022 at its research and development facility at the Université de Lorraine in Épinal.
Funding for the project would be provided by the French national government, expert engineering laboratories, the country's primary natural gas distribution network operator Gaz Réseau Distribution France (GrDF), and the Nouvelle-Aquitaine regional government.
Once operational, Idex would own and operate the plant.
The board said the project was expected to reach financial close in the second half of 2024, with construction and commissioning completed by early 2026, for live operation in the first half of that year.
Limoges Metropolis reserved the right to join a consortium with Eqtec and Idex as the project developed.
"The project represents a major win for Eqtec, and the first formal collaboration with a significant partner in Idex," said the company's market lead for France, David Le Saint.
"The RNG market in France has substantial growth potential as the country moves to set its first RNG feed-in tariff later this year, further supported by the anticipated announcement from European sovereign funds to accelerate project financing.
"Eqtec is already pursuing several RNG opportunities in addition to the Project and will make the most of the momentum toward RNG."
At 1450 GMT, shares in Eqtec were down 2.32% at 0.2p.
Reporting by Josh White for Sharecast.com.
