The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
EQT's partner in the Deeside RDF development (and possibly Southport RDF project) is Anaergia. They have recently won this Global Project of the Year award with an installation in California. They bring tech, expertise and funds to Deeside and are highly credible.
They are expanding developments in Europe and the UK with a first development in Italy commississioned 6 weeks ago.
Anaergia’s Rialto Bioenergy Facility in California Receives Distinction Award for Global Wastewater Project of the Year. 18/05/2022.
Anaergia Inc. announced that its Rialto Bioenergy Facility in Rialto, California, received the Distinction Award for Wastewater Project of the Year at the Global Water Awards 2022, one of the water industry’s most prominent international awards programs. The award was presented at a ceremony in Madrid, Spain, on Tuesday evening.
The Rialto Bioenergy Facility is a $185 million project built, owned, and operated by Anaergia. It is one of North America’s largest organics processing facilities, with the capacity to convert up to 1,000 tons per day of wastewater biosolids and landfill-diverted, organic waste into up to 985,000 MMBtu of renewable natural gas and agricultural fertilizer. By reducing the landfilling of organic waste and producing a carbon-negative fuel, the facility’s net carbon dioxide emissions reduction is approximately 220,000 metric tons annually—equivalent to taking 47,500 cars off the road.
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Anaergia Creates Two New Executive Roles to Accelerate Growth in Europe.
13/05/2022.
Alessandro will lead Anaergia’s European expansion and coordinate its commercial activities across the region. Based in Italy, Alessandro will utilize the Company’s management team in offices across Europe (located in Italy, Germany, Denmark, the United Kingdom and the Netherlands) to replicate the success already achieved in Italy.
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Anaergia Commissions First of Seven Renewable Natural Gas Facilities it Will Own and Operate in Italy. 27/04/2022.
Anaergia Inc. announced it officially commissioned its Easy Energia Ambiente facility in Pontinia, Italy, at a ceremony today. The state-of-the-art facility has the capacity to anaerobically digest 36,450 tons of landfill-diverted food scraps and other organic waste each year, and to convert this waste into 3,215,000 cubic meters of renewable natural gas (“RNG” or “biomethane”) that will be injected into the region’s gas pipelines. The new plant will also treat the digestate that remains after the anaerobic digestion process to create 4,500 tons per year of high-quality natural fertilizer, plus enough water to cover all of this facility’s requirements. Anaergia was the technology provider for the project, and it will own and operate the facility.
The Livadia project was first announced by EQT in an RNS dated 24/9/2021. It seems it has attracted funding as per this announcement but not yet advised by EQT.
This project is highly advanced as a previous project with approvals and grid connection has been taken over. Ready to go. To be operational in 2023. Total value approx €10 million plus? Financial Close soon?
The acquisition involves all the associated assets of Star I project including all rights and permits required for project development, build and operation as well as biomass feedstock agreements;
The Plant, once operational, is expected to produce approximately 1 MW green electricity from c.7,500 tonnes of mixed agricultural waste from local farmers;
The Plant has all licenses, building permits and a grid connection and a power purchase agreement ("PPA") is already in place;
The JV has received a Term Sheets from a number local Banks to provide the debt for the project funding at a Loan to Value ("LTV") ranging between 70 and 80%.
€7m funding for the Synergy Livadia project in Greece.
https://www-cnn-gr.translate.goog/oikonomia/sustainable-news/story/314534/diethnes-endiaferon-gia-ta-prasina-erga-toy-tameioy-anakampsis?_x_tr_sl=el&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp
No one in their right mind would want to be associated with Kibo after investigating them. The cash raise of £7 million you mention is for another new project in Zimbawe (not Billingham) that probably will never happen . Like all the rest! Kibo has no income and no cash and can't even pay the directors' salaries. But it does have regular cash raises diluting shareholders to next to nothing.
"Both Kibo’s and EQTEC’s business priorities have resulted in the parties’ putting on hold any such investment. It remains EQTEC’s intent to sell project SPVs to one or more investors at the earliest possible stage of project development, provided such sale supported the advancement of the project and EQTEC’s interests in it. EQTEC would consider any future proposals in that context."
Kibo disqualifies itself.
Aandi. re your comment on Billingham. Kibo will have no future part to play in this project as announced by EQT. This is a massive relief as Kibo is a micro company with no cash, a 10 year track record of no projects ever completed, just serial value destruction for its share holders. Now EQT can start again and hopefully attract an investor with credibility and the necessary finance.
36 Q&A's from EQT's Annual Results Investor Meet Company last month on line;
https://www.investormeetcompany.com/investor/meeting/2021-annual-results-2
Q3: Does Kibo hold an option to become the major shareholder in Billingham and if so are they funding the ongoing costs?
A. The announcement we made in late 2021 indicated that we had signed a conditional term sheet with Kibo for a potential investment into Haverton WTV, the SPV (special purpose vehicle) for the Billingham Project. Since then, the project development strategy and potential has significantly changed. Both Kibo’s and EQTEC’s business priorities have resulted in the parties’ putting on hold any such investment. It remains EQTEC’s intent to sell project SPVs to one or more investors at the earliest possible stage of project development, provided such sale supported the advancement of the project and EQTEC’s interests in it. EQTEC would consider any future proposals in that context.
Thanks RoR. Re this London SE interview with Rolf Gerritsen:
France is mentioned in passing again in this interview (as StockBox) as one of the shovel ready projects that are being considered.
France would be a break through for a commercial plant. There is the well established Eqtec test facility at the University of Lorraine so the next logical step is to have a commercial operation. If a shovel ready plant there receives funding in the near future it seems it could be up and running by Xmas well before any UK plant.
MNRG Tier 1: Projects that have successfully achieved financial close, ***** to be revenue generating by the end of 2022******, with a typical investment of between GBP2 million to GBP10 million, delivering an unleveraged IRR of between 12% to 16% with all the requirements for debt financing in place.
There are 3 Projects MNRG is looking at currently in Europe that should be revenue generating by the end of 2022 if in their Tier 1 criteria. So announcements must be coming imminently you would of thought!
Along with financial close revenue to EQT.
MNRG Tier 2: Projects ready to achieve financial close and construction to start in Q2 to Q4 2022, typical investment between GBP5 million and GBP10 million per project and leading to revenue within a maximum of 18 months from funding.
Key Points from Stockbox interview with Rolf Gerritsen about today's announcement:
MetalNRG Announce A Funding Update for MetalNRG Eco/EQTEC
Probably 6 or 7 projects in Tier 1.
They're in Europe and meet their citeria for investment.
1 - 3MW.
Greece, France and Croatia.
IRR 12-16%
They are looking at 3 key projects at the moment. Investment decisions will be made on a project by project basis.
Plants that are a bit different from building from scratch. Plants that are refurbished, or upgraded so that the time to production is relatively short.
EQT has done a fantastic job in getting them investment/debt ready.
Quality of EQT's projects is quite outstanding.
The Italy MDC has very favourable preferential pricing for the sale of electricity generated as a result of the contract from the previous operator.
https://www.youtube.com/watch?v=KEFPb0nK2w8
Kibo Energy PLC the energy focused development company is pleased to announce that it has entered into a 10-year take-or-pay conditional Power Purchase Agreement (`PPA') to generate baseload electricity from a 2.7 MW plastic-to-syngas power plant. The plant will be constructed, commissioned and operated for an Industrial Business Park Developer (the "Client") in Gauteng, South Africa. The Project, is the first project under Sustineri Energy, a joint venture in which Kibo Energy PLC holds 65% and the balance of 35% is held by Industrial Green Energy Solutions PTY LTD ('IGES').
The Project will provide the Client with cleaner electricity, by making use of a high temperature pyrolysis process, where selected non-recyclable plastics will undergo thermal degradation to produce high quality syngas, which will in turn feed gas engines to generate both electricity and heat energy. Additionally, there is potential to sell the heat energy generated as a byproduct from the gas engines directly to customers inside the industrial park.
Project Highlights
-- Compelling financials: based on the optimised financial model, an EBITDA of c. ZAR 388 million over the life of project is expected, for an installed capacity of 2.7 MW, of which an amount of c.ZAR 252 million is attributable to the Company. There is potential to expand the project to c. 8 MW installed capacity in the future.
-- Internal Rate of Return ("IRR"): an IRR between 11% - 14% p/a is projected on the initial installed capacity of 2.7 MW.
-- Reducing plastic pollution to produce sustainable energy: by using selected and specific high calorific plastic as fuel feedstock, which can under prevailing legislation no longer be dumped at landfill sites, the Project will play an important role and make a significant contribution towards the advancement of clean energy generation.
https://uk.advfn.com/stock-market/london/kibo-energy-KIBO/share-news/Kibo-Energy-PLC-Ten-Year-PPA-on-SA-Waste-to-Energy/87266722
EQT/MetalNRG links, partly from yesterday's MNRG Broker Note.
MNRG Share price 0.335p
52 week high/low 1.225p/0.24p
EQT has the possibility to benefit from the sale or part disposal of its 14.1% stake in MNRG, exercise of the 50 million warrants as well as from the project finance MNRG can bring to the pipeline of EQT shovel ready projects.
EQT expects to exercise the right to appoint a director to the MetalNRG Board in the first half of 2022.
In the move into green energy, MetalNRG has come under the wing of EQTEC. It has developed a strong international network which provides access to a healthy pipeline of good projects. The Italian project is the company’s first entry into this industry.
The management is seeking to develop a strong partnership with EQTEC which has been cemented with a £290,000 share swap and the first joint venture project in Italy. MetalNRG Eco joined a consortium led by EQTEC to repower, own and operate the biomass-to-energy plant in Castiglione d'Orcia, Tuscany. When it becomes operational, the plant will turn straw and forestry wood waste from local farms and forests into green electricity and heat for use locally. This initial project is based on a plant which was previously in production, but the parent company went bust. However, there are still some 7-8 years of decent tariffs from the national grid to benefit from.
MetalNRG will hold 26.66% equity in the SPV for an investment of €700,000. The plant is forecast to annually generate €2 million in revenue and €750,000 in EBITDA, which equates to €200,000 per annum to MNRG. It is expected to generate an unlevered IRR of 20%.
With EQTEC’s support, MetalNRG Eco will be looking at waste to energy projects with capex typically in the £1.5 million - £15 million range which can be financed via equity and debt.
EQTEC has a number of shovel ready projects in Croatia, Italy and Europe. MNRG will be involved in further such projects and say if the company invests €1 million apiece in two additional projects, this could generate €600,000 – €700,000 of EBITDA per annum for MNRG.
Accelerating the speed of the move into green energy infrastructure will require the investment of increasing sums but comes with a compelling long-term stream of high-quality earnings.
MetalNRG has a clear growth strategy focused on green energy and metals. In the current year, it looks as though interests in BritNRG and Lake Victoria Gold could be disposed of which will allow funds to be recycled to finance the development of other opportunities. This could free up more capital to finance green energy projects numbers 2, 3 and 4.
MetalNRG has three aces to play – gold, uranium and green energy. We also note that c.£4 million could come into the kitty from warrants being exercised. That requires a share price clearly north of 1p, which we do not think is that elusive given the planned developments, sound fundamentals and the current outright derisory market cap.
Ralf Gerritsen vid: New details of the Tuscany plant he expects to be operational some time in Q2, about mid year. It seems all is going well there. He says that they will benefit from the original premium tarif for electricity supply but in addition they have renegotiated the wood chip supply from the farms and all around the local area so it is an even better deal for the business.
Also they are looking carefully at another 4 shovel ready plants that EQT is set to restore to production. About 2 or 3 they are expecting to invest in over the next 12 to 15 months.
Sefton Council have already given strong support to EQT's Biogas plant in pre-planning discussions. With these provisional dates for construction it seems planning approval may go through quickly and this project leapfrog the other two at Billingham and Deeside. Particularly if Anaergia and Wood take on project finance.
Planning application submitted for Phase I of Southport Energy Recovery Park.
In outline the programme for construction is broadly, as follows:
Stage Anticipated duration
Goetechnical ground investigations Quarter 2, 2022
Demolition and Earthworks Quarter 2 – 4 2022
Building construction and civils Quarter 2 2022 to Quarter 3 2023
Process, mechanical & electrical From Quarter 2 2023
Note: these dates are provisional and will be updated as the construction programme is developed
On listing of Aclara on the TSX, HOC shareholders will be issued with Aclara DI's which will be held and traded in CREST according to the HOC demerger document:
"Aclara DIs
7.1 Overview of Aclara DI arrangements
A Depositary Interest (or DI) enables the holder to hold and settle transfers of Aclara Shares in CREST. CREST is a paperless settlement system that allows securities to be evidenced otherwise than by a certificate and transferred from one person’s CREST account to another electronically. Securities of issuers domiciled outside the United Kingdom and certain other jurisdictions, such as Aclara, cannot be held or settled directly in CREST, whilst Depositary Interests cannot be settled through CDS on the Toronto Stock Exchange. However, upon instruction from a holder of DIs to the UK Depositary (as defined below), the Aclara Shares represented through CREST in the form of Depositary Interests may be transferred into CDS.
Aclara, therefore, has entered into arrangements to enable investors to hold, and settle transfers of Aclara Shares in CREST in the form of Aclara DIs. Each Aclara DI represents an entitlement to one underlying Aclara Share. Although the Aclara DIs will be independent securities constituted under English law, they will reflect the same economic rights as are attached to the Aclara Shares."
I think EQT have more than enough projects in development for now and would be well advised to get on with these, get some cash flow coming in and capital funding closures across their portfolio before commiting to anything more. If Italy MDC is operational by the end of Q2/2022 maybe that would be the time to look/relook at Bulgaria.
btw This list of 17 projects according to EQT was up to 30/9. With your list I think you will find Drama, Greece was only announced in October so maybe there is another project on their list floating around?
Thanks RoR. The Bugarian government caused EBOSS massive problems and probably nearly bankrupted them at the time so I can well understand if EQT don't want to go there or go back to this plant. If the woodchip operation was ever expanded I don't know how viable it would be in today's market. Trucking bulk "high quality wood pellets" hundreds/a thousand km across Europe would be costly and best done locally from a local source of timber.
The electricity generated may be economic in today's market even without subsidy but perhaps not attractive enough to EQT compared with Italy and Croatia?
Maybe they had talks but decided for the capital outlay needed it wouldn't meet their required return threshold?
TheReverand. At the time the Bulgaria plant was built EQT was based in Bulgaria. The plant construction was overseen by EQT and by Yoel Adelman as per the video.
ROR. Yes, very good video that others may not have seen. The current status of this plant may be up in the air waiting for someone like EQT to come along and make an offer?