Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
n addition, its failure to turn a profit thus far may have been a problem. However, we expect that this sell off is a shorter-term opportunity to enter a quality stock with promising technology potential perfectly aligned with policy and direction of governments and the move to greener technologies.
Another risk is that COP26 disappoints in terms of what is agreed by governments.
If history is anything to go by, this could well be the case.
Also, demand for EQTEC’s sustainable technology may fall short of its projections, which could be reflected in its share price.
Finally, the green energy market is becoming increasingly crowded. As more governments look to deploy green energy alternatives, private companies are being pinpointed to deliver them.
However, with its two patents, we believe that EQTEC will be able to mitigate this and provides investors with an element of inherent value in the technology EQTEC has on offer.
EQTEC is unquestionably a speculative investment, but trends are moving in its favour and we believe now is an opportune time to enter the stock.
Action to take: BUY EQTEC (LSE:EQT). Current price is 1.2 GBp. Buy up to 1.40 GBp.
Name: EQTEC plc
Ticker: EQT.L
Price as of 11/11/2021: 1.2 GBp
Market cap: £102.61 million
52-week high/low: 3.168/0.46 GBp
Buy up to: 1.40 GBp
Importantly, EQTEC’s gasification process is protected by two patents.
The early stage of technology commercialisation
Currently, EQTEC has one gasification plant in operation. It is situated in Movialsa, Spain, and has been running for around ten years. It has an output of around 6MWe (six megawatts or six million watts of electric capacity).
To give an idea, one megawatt equates to the same amount of electricity consumed by approximately 650 households in a year, on average.
EQTEC also has nine collaboration agreements in which it is currently developing its very own gasification plants.
The projects span across the world, including the United States, Greece, Italy, Croatia, and the UK.
Notably, its Billingham project in the UK will provide a capacity of 25MWe once completed. It will become the UK’s first sustainable waste-to-energy plant.
Financials and risks
EQTEC makes money by licensing and selling its technology to customers in the waste management and green energy infrastructure sectors.
Some of its current partners include giant energy conglomerates EDF Energy and Siemens.
For the year ended 31st December 2020, revenues were €2.23 million – a 33% increase compared to 2019.
However, operating losses almost doubled, going from €2.46 million to €4.65 million.
We acknowledge the losses, but right now as EQTEC is in the process of commercialisation they’re not a major worry for us. As demonstrated, the company is scaling up production and injecting large sums of cash into its actual and potential projects.
In its most recent figures, the company recorded revenues at €481,720 for the six months ended 30 June 2021, down from €770,308 over the same period in the previous year.
They also reported an adjusted net loss of €2.6 million, up from €1.3 million in the previous corresponding period.
As ever, though, the future is more important than the past. Indeed, 2021 could well be the year in which EQTEC really starts to shine
For the year ending 31 December 2021, the company is projecting its revenues to be in the region of €15 million; a 700% increase on its revenues from calendar 2020.
Interestingly, the company has revealed that its current pipeline of projects, which includes non-contracted tender opportunities, are worth €657 million.
That said, it's important to consider the risks that the company faces.
At least some people consider the risks to be very significant: the company’s share price has been on a downward trajectory for the entire year.
It closed on a yearly high of 2.77GBp in January 2021 . Now it’s 1.2 GBp at the time of writing.
However, we can attribute part of this decline to the broader sell off in clean energy stocks by institutional investors at the start of the year.
In addition, its failure to turn a profit thus far may have been a problem. However, we expect that this sell off is a shorter-term opportunity to enter a quality stock with promising technology pote
Transforming waste into green energy
EQTEC (LSE: EQT) is a developer of clean energy infrastructure that sustainably reduces waste.
It is an AIM-listed company on the London Stock Exchange. It has a market cap of £102.61 million and a current share price of 1.2 GBp.
The company has locations in Cork (Ireland), London (UK), Barcelona (Spain) and was founded in 2005.
EQTEC designs and supplies gasification plants that convert waste into synthesis gas (syngas), which is then used to power applications in the generation of green energy.
The syngas is used as fuel to generate electricity and heat, or to produce transportation fuels and green hydrogen.
The gasification technology is highly versatile and can process up to 50 different types of feedstocks, including municipal waste, agricultural waste, biomass and plastics.
What’s impressive is that EQTEC makes the gasification happen without combustion.
In the absence of combustion, they are able to reduce their harmful environmental impact.
Relative to other companies in the Frontier Tech Investor portfolio, EQTEC is unusual in that it is in the waste management industry – a big business.
According to EQTEC, the world is projected to increase its waste production by up to 70% by 2050. In addition, the global waste management market is set to be worth $485 billion by 2025.
Ignoring the hard sums, landfills impose significant environmental cost on the Earth.
This is because organic waste emits high levels of methane gas when it is left to rot at landfill sites. Methane is a major contributor to global warming, and can be up to 86 times more potent than carbon dioxide in trapping heat in the atmosphere.
EQTEC’s technology provides a cost-effective and sustainable solution to this problem.
What’s interesting is that in the current COP26 talks, 103 countries have signed a deal to reduce global methane emissions by 30% by the end of the decade.
This automatically brings EQTEC’s technology into focus.
Of course, EQTEC is also in the energy business.
According to EQTEC, electricity production will triple by 2050 and renewable energy will make up 50% of global energy by 2035, up from around 20% today.
In fact, the global renewable energy market is predicted to be worth $2 trillion by 2025.
Our view is that its EQTEC’s technology that could play a key role in helping to fulfill the world’s insatiable demand for electricity, which is growing in line with the world’s transition to greener energy alternatives.
But also due to their innovative approach to energy generation, they fit perfectly in with global “green” energy policy and we believe they are poised to capture a sizeable share part of both the waste management and energy generation markets.
With the shift to decentralised energy grids, which are helping to take the pressure off overstretched national energy grids, EQTEC’s technology could become an attractive option for policy makers.
Importan
Morning folks
As eqt progress with their continued growth in pipeline, their 17 ongoing projects, we get ever closer to the end of the year. Effectively the year we do 700+%revenue growth.
With this in mind I hope the next 8 weeks are packed with exciting developments
GLA
600 thieves
Interesting point about the Ppi claims but 1 statistic which we never saw and never will, is the £millions that were claimed by people, I am aware of people who actively bought the product, made successful claims, then got compensation for miss selling.
Ppi started as a block policy added onto mortgages in a 5 year premium bundle increasing balances by up to £15k. It was criminal.
The banks just got pulled into it by definition.
Some people made a mint from Ppi, and they actively bought it to begin with. The whole thing start to finish was corrupt.
Eqtec have patented systems recognised by the industry.
Closures coming
R&D on hydrogen
Reg talks about licensing the technology
If we get some big partners on board through collaboration with a global partner how big could they get
Addition to above notes taken from Arden report
When a customer provides details of a type of waste and the available volume in
terms of MT/hour, EQTEC’s Kinetic Simulation Software can provide that customer
with a detailed analysis of thermochemical reactions that take place in the
gasification process, the syngas composition ratios within a +/- 5% margin of error,
and the output that would be produced from an operating plant
The process inside the gasifier is bespoke and entirely aligned to the customer’s
specific feedstock / waste requitements, the tuning of this is a function of the
patented modelling software.
Never one to wish away my time on this mortal coil but…..
By 31st December I really am expecting great things here.
So much news to come with financial closes this year
COP26 in November this year being hailed as the most important meeting mankind has ever held ????
December 31st marks the end of eqtecs first profitable year (hopefully)
Looking like R&D announcements likely to be around green hydrogen.
Hoping that this firm pull everything together and become the company we all hoped they will be
GLA
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