Last checked at 13 Oct 2021 08:22
13 October 2021
EQTEC plc
("EQTEC", the "Company" or the "Group")
Agreement to acquire waste-to-energy project in Greece
EQTEC plc (AIM: EQT), a world-leading gasification solutions company building a cleaner waste-to-energy industry, is pleased to announce that it has signed an agreement for the proposed acquisition of a 5MWe project in Drama (the "Project"), North Eastern Greece, through the recently established EQTEC Synergy Projects Limited ("Synergy Aegean"), a joint venture ("JV") between EQTEC and its Greek strategic partners, German EPC company, ewerGy GmbH ("ewerGy") (operating in Greece via its local partner, ECO Hellas M IKE).
Once acquired, the JV will lead the development of a new biomass-to-energy plant (the "Plant"), generating 5MW green electricity from locally and sustainably sourced forestry waste. Due diligence, including financial and technical feasibility, has been completed.
Completion of the acquisition of the Project is subject to entering into of a Project Purchase Agreement, customary for this type of transaction.
Highlights:
· | Synergy Aegean to acquire the biomass-to-energy Project in Drama, North Eastern Greece; |
· | The JV has signed a Preliminary Project Acquisition (the "Agreement") for the acquisition of the Project via a Special Purpose Vehicle ("SPV") to acquire the assets of the Project; |
· | The JV is in discussions with a number of local banks to provide the debt for the project funding at a Loan to Value ("LTV") ranging between 70 and 80%; |
· | Active discussions with investors for the equity funding for the SPV are currently underway, toward Financial Close targeted for Q3 2022; |
· | The Plant, once operational, is expected to achieve the Company's baseline target unlevered IRR of 12% and the JV team have identified commercial opportunities that if implemented, will further increase project returns; |
· | The acquisition involves all the associated assets of the Drama 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 5MW of green electricity and up to 8MW of thermal output which is critical for the region, from c. 35,000 tonnes of locally sourced forestry waste; |
· | The Project is considered of public interest due to its location in one of the coldest regions in Greece: Nevrokopi, where temperatures have reached minus 30oC and there is no established infrastructure of heating networks. The Project will also bring local employment in this region of particularly high unemployment; |
· | The Plant has all licenses, building permits, grid connection and a power purchase agreement ("PPA") already in place; |
· | The project EPC will be ewerGy; and |
· | Once the optimal financing structure is secured for the Plant, the Company will make further announcements. |
David Palumbo, CEO of EQTEC, commented:
"I am very pleased that our Joint Venture in Greece is gaining further momentum with the intended acquisition of this project in Drama, after last month signing an agreement securing two agriculture waste-to-energy projects in Livadia. All of our projects in our Greek pipeline, now totalling five and with strong potential for more, will help local farmers and forestry managers to use the waste they produce in a way that supports a circular economy and is beneficial for the environment and local communities. This will be considered a project of public interest as it addresses two critical local requirements: heating and employment. Through this Project, we are continuing to extend the reach of and apply our Advanced Gasification Technology in the EU, demonstrating strong demand in this market for the more sustainable approach to waste-to-energy that EQTEC can deliver."
ENQUIRIES
EQTEC plc | +44 203 883 7009 |
David Palumbo / Nauman Babar | |
Strand Hanson - Nomad & Financial Adviser | +44 20 7409 3494 |
James Harris / James Dance | |
Arden Partners - Joint Broker | +44 20 7614 5900 |
Paul Shackleton (Corporate) / Simon Johnson (Sales) | |
Canaccord Genuity - Joint Broker | +44 20 7523 8000 |
Henry Fitzgerald-O'Connor / James Asensio / Patrick Dolaghan | |
Alma PR - Financial Media & Investor Relations | +44 20 3405 0205 |
Josh Royston / Sam Modlin / Matthew Young | EQTEC@almapr.co.uk |
BECG - General Media Enquiries | +44 7554 014 188 / +44 7867 452 269 |
Carrie Lowe / Tom Gosschalk | EQTEC@BECG.com |
About EQTEC plc
As one of the world's most experienced gasification technology and engineering companies, with a growing track record of delivering operational and commercial success for transforming waste-to-energy through best-in-class technology innovation, engineering and project development, EQTEC brings together design innovation, project delivery discipline and solid commercial experience to add momentum to the global energy transition. EQTEC's proven, proprietary and patented technology is at the centre of clean energy projects, sourcing local waste, championing local businesses, creating local jobs and supporting the transition to localised, decentralised and resilient energy systems.
EQTEC designs, supplies and builds advanced gasification facilities in the UK, EU and US, with highly efficient equipment that is modular and scalable from 1MW to 30MW. EQTEC's versatile solutions process over 50 varieties of feedstock, including forestry wood waste, vegetation and other agricultural waste from farmers, industrial waste and sludge from factories and municipal waste, all with no hazardous or toxic emissions. EQTEC's solutions produce a pure, high-quality synthesis gas ("syngas") that can be used for the widest range of applications, including the generation of electricity and heat, production of synthetic natural gas (through methanation) or biofuels (through Fischer-Tropsch, gas-to-liquid processing) and reforming of hydrogen.
EQTEC's technology integration capabilities enable the Group to lead collaborative ecosystems of qualified partners and to build sustainable waste reduction and green energy infrastructure around the world.
The Company is quoted on AIM (ticker: EQT) and the London Stock Exchange has awarded EQTEC the Green Economy Mark, which recognises listed companies with 50% or more of revenues from environmental/green solutions.
Further information on the Company can be found at www.eqtec.com.