RE: RNS17 May 2021 08:32
· The Parties have signed a Heads of Terms Investment Agreement, (the "Agreement") for the funding of the SPV, with financial close due imminently, subject to execution of the final form agreement by the Parties.
· MetalNRG will hold 26.66% equity in the SPV for an investment of Euro 700,000. The Plant is expected to generate an unlevered IRR of 20% and annual EBITDA in excess of Euro 750,000;
· The Plant is due to be fully recommissioned and operational by Q2 2022. Connection to Italy's national grid is already in place and the Project will benefit from the country's favourable tariffs for electricity produced from waste biomass until the end of 2027;
· The Plant is expected to produce 1MW green electricity from one tonne of straw pellets and wood chips annually and will be upgraded to process a greater diversity of biomass feedstocks over time;
· EQTEC will be the co-owner, operator and Advanced Gasification Technology supplier to the Plant and is contracted to be the O&M contractor for the Plant following its recommissioning; and
· The EPC contractor for the Project will be COS.M.I. Srl ("COSMI"), EQTEC's Italian delivery partner and a company with successful experience in building EQTEC plants.