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Hi "The Analyst" I am firstly not predicting EQT failing
But I do know PHE and ITM but that's another story - former just did a rights issue
And at another sector level no one wants EQT to fail there have been too many failures, which is why 75% of "green" financial community won't look at gasification or pyrolysis, so I have a vested interest in seeing EQT succeed
But EQT occupy a tiny niche in UK and EU - generally WtE projects are around £300m to £500m a throw , they need scale to make money
However if you want a respected professional player in UK in this very sector see Cogen UK
I think this will be a final post as becoming too distracting so its good bye

To the Analyst

Firstly I am a new to this forum but I am surprised by the gratuitous rudeness and accusatorial style coupled
with wild assertions in this forum

It is the latter which served as a catalyst to respond although it seems to have attracted the ire (and a large serving
of cognitive dissonance) from many private Investors holding the stock bar the 2 corporates – holding 38.79%
of stock per Bloomberg yesterday at 0850

The WtE sector is a complex one even after 30 years in it, but there is no need whatsoever to believe what I have written.
Go to any of thousands of experts in sector from Private Equity, VC’s or top 4 accountants ; PWC alone has > 100 qualified
Renewable corporate finance experts. Together they see thousands of WtE opportunities each year cost maybe £500 to
£1000 for an hour , a small price to pay

But for free external referencing look at Tolvik WtE stats 2019 report dated May20 and there is a good emag “Lets Recycle”
And then you can google UKWIN gasification failures to square the circle

You mention business partnerships Cobra etc but the project will be there project if they have any significant role. What is EQT’s role?
A project SPV is de rigueur but as I have said no investor or debt provider will put a penny up unless there is a strong project pedigree, proven team, highly experienced business partners and a totally secure supply of feedstock with a project IRR in this sector 15% to 20% All must have very strong financials as a full 100% wrap will need to be provided
I don’t know EQT nor what projects EQT have successfully completed
Generally only 1% of opportunities get funded, for WtE its much less than that
Just to get a WtE project investment ready with all approvals, permits, reviews and contractual framework etc costs upfront a minimum of £500k and up to £3m in professional fees etc
Per project that written off if no completion You cannot get funding on just an idea as you might well know

But at present most funders are focused on saving the supposedly “safest bet ” solar & wind projects where they invested billions effected by low power price and exacerbated
By being funder by debt ; one of biggest UK funders, £500m + a go, has said come back in 2 years.
For Billingham over 20 years the low Mwh price means a loss of power revenue N of £100m – you can do the sums yourself .

Then to create the perfect storm feedstock gate fees are a disaster at present, with any volumes grabbed by recyclers leaving the incinerators etc short of input and prices just ridiculous waste food per tonne down by 75%

So all in all WtE is a problematic market in a number of ways at present

Firstly thank you for your cordial words
I have been retired as a Director from WtE sector a number of years, but came across an LSE posting which was somewhat extravagant in praise for sector which I couldn't leave alone

Gasification and its cell mate pyrolysis has had a problematic pedigree as maybe be seem from https://ukwin.org.uk/files/pdf/UKWIN_Gasification_Failures_Briefing.pdf ; Teeside /Billingham still seems to attract loads of interest but there would be totally insufficient feedstock for all - you need a 20 year supply deal written in stone.
Investment losses have exceeded £1b with the best of them loosing money, which encouraged plagued by a number of "undesirables"

But projects have got a lot bigger which saw the back of them,
More recently gasification are becoming mainstream as in www.cogenuk.com/ who done a number of gasification using Japanese and other technologies however all the partners involved in their projects have to financially guarantee construction & operating performance maybe up to £200m to £300m so big boys only need apply- good credit essential

But gasification is also competing with incineration (moving grate) a known technology with much lower risks and subsequently much lower cost of capital. New incineration projects are announced every week see www.letsrecycle.com/news/latest-news/ although burning waste is not always welcome as you know

But given lower risks of incineration you can get a lot more debt at a cheaper cost than equity maybe exceed 75% gearing with proven players , partners and technology; and each partner be it an EPC or O&M must financially guaranting up to cost of project, you may be able to cover some by insurance but they can't fix outages!

For Gasification funders may want sponsors to put up to 75% in equity even if team has list of projects as long as your arm

However I cannot see any project working at £25/Mwh current wholesale spot price www.nordpoolgroup.com/Market-data1/GB/Auction-prices/UK/monthly/?view=chart - this is whole new territory
I don't know of the Greek projects or EQT in anyway but roughly only 40% of some UK WtE projects is attributable to developer of that may get c10% to 20% GP
Remember this is not without competition I could easily name you a dozen gasification cos in UK & EU
As said I don't think its an Amazon!
I hope that helps

Its nothing to do with what the South Easteners is but that most WtE plants are situated in the North , planning approvals for waste South East is notoriously very difficult if not impossible , but that's where they are needed - so waste gets trucked by the 1000 or on trains,with Rotterdam now being effectively shut to our RDF exports given taxes
Waste companies are well aware of geographic imbalance

The last thing I want to be is some Jonah, although I do admire the sheer enthusiasm for the stock but I fear it is misplaced
The Billingham site is in a region awash with fully consented sites , about a dozen maybe a quarter of those will get done
Pity plant not in South East where it is needed
And that quarter will have enough financial resources to fund it - might get 50% gearing at best so say £100m in equity
However the wholesale price of electricity fallen through floor in fact you had to pay to get rid of it the other weekend up to £40/Mwh
So a story of untold wealth from EQT may not be on the agenda

?