RE: RNS26 Jul 2024 07:04
Acquisition of property housing the EQTEC Italia MDC plant
EQTEC plc (AIM:EQT), a global technology innovator powering distributed, decarbonised, new energy infrastructure through its waste-to-value solutions for hydrogen, biofuels, and energy generation is pleased to confirm the acquisition of two lots of property in Castiglione d'Orcia (SI), Italy that house the EQTEC Italia MDC plant and feedstock storage facilities (the "Property"). The Property includes land, buildings and associated rights of way. Formal completion of the Property acquisition (the "Transaction") occurred on 25 July 2024 and accordingly, EQTEC Italia MDC Srl's ("Italia MDC") ownership of the Property is now registered with the Siena provincial authorities.
The first lot of the Property houses the core gasification technology supplied by EQTEC to the plant, including the gasification reactor, the cyclone, the thermal cracking reactor, the filter and other components that comprise EQTEC's patented and proprietary end-to-end syngas production process. It also houses the control room for EQTEC's proprietary control systems and an engine room that houses a Jenbacher engine, which uses the syngas supplied by the EQTEC process as fuel to generate heat and electrical power, the former of which is recycled to support plant operations and the latter of which is exported to the national grid, earning revenues at a preferential tariff.
The second lot of the Property acquired is a large, segmented storage facility that stores feedstock to be input into the EQTEC process for thermochemical conversion, and equipment regularly used by the operations & maintenance team on site.
The consideration for the Transaction was €0.57 million in cash, funded by Italia MDC from the €2.9 million facility provided by Banda del Fucino S.p.A. announced by the Company on 16 January 2024.
Prior to its legal acquisition of the Property, Italia MDC had been leasing it from Toscana Cereali Societa' Cooperativa Agricola. Following the Transaction, leasing payments no longer apply, saving operational expenditure of c. €0.1 million per annum.
David Palumbo, CEO of EQTEC, commented:
"Italia MDC has completed the Transaction on schedule and thus takes ownership of critical infrastructure and land to support the plant. In addition to removing rent as a run cost to the facility, in the Board's view this Transaction also substantially enhances the value of the combined facility and gives Italia MDC the flexibility to develop it further for efficiencies and new revenue opportunities."
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