(Alliance News) - EQTEC PLC shares surged on Thursday after the North Fork project in central California reached financial close.
Shares in the waste-to-energy firm were up 39% in morning trade at 0.16 pence each.
North Fork Community Power finalised and signed the legal documentation that allows the financial close of the proposed construction and operation of a 2 megawatts biomass plant at the North Fork project.
The biomass project was delayed in early November following a series of fires in the western US state.
Back in June, Eqtec said it will buy a 20% interest in North Fork Community Power on financial close of the project. On Thursday, the company said this acquisition has now been completed.
Under the contract, EQTEC said it will invoice to North Fork Community Power a total of EUR2.2 million for the sale of equipment and the supply of engineering and design services.
On commissioning - expected before the end of the first quarter of 2021 - the project is estimated to have a valuation of USD20 million, EQTEC said, and be capable of generating annual revenue of USD4 million.
"We are delighted that together with Phoenix Energy we have now achieved financial close with North Fork. Despite facing challenges outside our control in the financial closing process, both teams worked relentlessly and creatively to achieve financial close by the year end as was required," said Chief Executive David Palumbo.
He continued: "We see the funding of our first project in the US as an important milestone to attract funding for the rest of the Phoenix project pipeline and we believe the relationship will develop beyond the next four projects which are currently under exclusivity. We believe that there will be many more opportunities in California arising from the need to address the current critical situation facing the state with regards with forestry wood waste.
"We further believe that our partnership will provide further benefits going forward as we continue to implement our clear growth strategy in converting biomass into clean energy in the US."
By Paul McGowan; paulmcgowan@alliancenews.com
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Eqtec (EQT)