Usk project24 Jul 2018 10:49
EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, is pleased to provide an update on the progress the Company has made with its near-term project pipeline since the completion of acquisition and readmission on 28 December 2017.
As stated in the Admission document dated 27 November 2017, a series of projects have been secured by way of an EPC contract and/or an MOU including, Reliable Energy Melton Hull and Reliable Energy Seal Sands projects as well as Zebec Energy project located in the municipality of Usk, Wales.
The Company is pleased to report significant progress by signing a new Memorandum of Understanding ("MOU") and taking key steps towards commencing these projects.
Usk Project (previously known as Zebec Energy project)
The Usk Project located in the municipality of Usk is for a facility which will have a capacity to process ca. 42,000 tonnes of wood waste per year and a power output of 6.4 MWe.
The Company was recently informed by Brooke Energy, Ltd ("Brooke") that the Usk Project in south-east Wales is now to be built and operated by a consortium led by Brooke, a company that builds, operates and manages biomass fuelled power plants that cover the South West of England and Wales.
EQTEC had to renew its agreements with the new operator of the project and has now signed an MOU with the consortium containing Brooke, Exergon Sp. z o.o. ("EXERGON") and RAFAKO SA ("RAFAKO").
Under the terms of the MOU, EQTEC will sell its patented EQTEC Gasifier Technology ("EGT") to RAFAKO who is the Engineering, Procurement and Construction ("EPC") Contractor for the whole power plant and will exclusively use its proprietary EGT for the gasification and gas cleaning process. The Usk site has already in place gas engines, a biomass drier, absorption chiller and grid connection among other equipment and the new owner has chosen EGT to complete the project.
Brooke will seek to secure equity finance for the project and RAFAKO will seek the debt financing. Financial close and the commencement of the project is, as previously expected, in the first half of 2018.
EQTEC revenues from the Usk Project are still expected to be £11 million to be invoiced over a period of two years.
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