RE: Tipped11 Nov 2021 20:01
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
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