Rns8 Dec 2020 07:03
RNS Number : 8373H
EQTEC PLC
08 December 2020
8 December 2020
EQTEC plc
("EQTEC", the "Company" or the "Group")
Agreement to acquire Deeside RDF Project following further progress
EQTEC plc (AIM: EQT), a world leading gasification technology solutions company for sustainable waste-to-energy projects, is pleased to announce that, further to its announcement of 23 July 2020, EQTEC's wholly owned subsidiary, Deeside WTV Limited (the "Buyer"), has signed a Share Purchase Agreement (the "SPA") with Logik Developments Limited ("Logik") to acquire full ownership of the Deeside Refuse Derived Fuel ("RDF") project (the "Project") from Logik through the acquisition of Logik WTE Limited (the "Project SPV").
The Project is part of a portfolio of projects currently under review by a European owner-operator of waste to energy infrastructure, which is expecting, assuming, inter alia, completion of final credit review and finalisation of documentation, to provide the financing required for the construction phases and commercially operate the plants and this Project via investment into Deeside. Assuming the requisite financing is provided, EQTEC expects to act as the project developer on the Project, providing the design and core advance gasification technology and retain a portion of the O&M contract.
Conversations with potential EPC companies are ongoing and the documentation required for tendering the EPC contract for the first phase of the Deeside RDF Project is currently being produced. Once full commercial EPC offers are reviewed and negotiated to contract, a final decision will be reached with regards the funding structure for the Project, on which EQTEC will then provide an update to shareholders.
EQTEC and Logik are progressing discussions about a potential framework collaboration agreement that is expected to cover the keys terms of a proposed cooperation for the development of a portfolio of waste to energy projects that Logik is currently pursuing in the north of England and across the UK.
David Palumbo, CEO of EQTEC, commented:
"We are pleased to have signed this SPA to acquire the Project SPV for the Deeside RDF Project after completing our due diligence, making good progress on funding discussions and shortlisting EPC companies for the Project. We estimate that, with the application of EQTEC's advanced gasification technology, the Project would convert hundreds of thousands of tonnes per year of non-recyclable everyday household and commercial waste otherwise destined for landfill or incineration.
In this way, EQTEC expects to be able to significantly improve both the economics and the environmental impact of this plant and many traditional waste-to-energy facilities, bringing employment to the local area and economic and environmental benefits to both the local community and large industrial energy users, whilst delivering attractive returns to EQTEC's shareholders."
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