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(Alliance News) - Eqtec PLC on Tuesday said it has entered a joint venture agreement with CompactGTL Ltd for renewable synthetic fuels.
Shares in Eqtec climbed 97% to 4.44 pence each in London on Tuesday afternoon.
Eqtec, a thermochemical conversion technology company based in Cork, Ireland, said the 50-50 JV will pursue implementation of an integrated, waste-to-liquid fuel solution based on Eqtec syngas technology and CompactGTL gas-to-liquid conversion technology.
CompactGTL is a London-based specialist gas-to-liquids company, focusing on oilfield developments.
"The partners intend that the JV become an innovator and licensor of technology for liquid fuels produced from waste, including transport fuels such as sustainable aviation fuel", Eqtec said.
The companies have already identified "a number of potential investors" for both research and development purposes.
Eqtec Chief Executive Officer David Palumbo said: "The versatility of Eqtec's syngas technology makes renewable synthetic, or drop-in, fuel production possible. But more than that, the quality of syngas that Eqtec technology enables is likely to result in a much better performance of the gas-to-liquid reactors than other syngas technologies could offer. That would mean a higher yield of liquid fuel from a lower volume of feedstock, higher productivity and efficiency, and greater commercial returns.
Earlier on Tuesday, Eqtec confirmed that Rome-based lender Banca del Fucino SpA has approved its drawdown of the EUR2.9 million loan facility.
Eqtec said the facility will provide funding for its subsidiary Eqtec Italia MDC Srl. Italia MDC owns the Italy Market Development Centre, a waste-to-energy plant in Gallina, Tuscany.
Banca del Fucino confirmed the approval following its visit to the plant last week, after Eqtec Italia "completed a series of operational performance improvements and achieved the performance criteria set by the lender".
Eqtec Italia plans to "imminently" draw down the facility to support the plant's business plan, as well as further performance improvements. Part of it will also go towards repayment of shareholder loans which have to date funded the project.
Eqtec noted that the plant has been operational since March. It handed over operations to Italia MDC in June.
Chief Executive Officer David Palumbo said Eqtec was "delighted to have achieved this significant milestone".
"The financing by Banca del Fucino, a traditional, primary lender, indicates their confidence in our business proposition and underlines their investment strategy toward new energy solutions and supporting innovation," he added.
Also on Tuesday, MetalNRG PLC said it was "pleased" by the news. The London-based natural resources and energy investor in 2021 joined an Eqtec-led consortium with two other partners, to contribute to an EUR2.1 million aggregate investment in the Tuscany plant.
"I am delighted with the facility draw down and congratulate the Eqtec Italia team on a well done job," commented MetalNRG Executive Director Rolf Gerritsen.
By Sabrina Penty, Alliance News reporter
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