Last checked at 24 Sep 2018 07:00
24 September 2018
EQTEC plc
("EQTEC" or the "Company")
EQTEC selected as exclusive technology supplier for two Power Plants in USA
MOU signed with Phoenix Energy for two contracts totalling approximately EUR10 million
EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, is pleased to announce that it has signed a Memorandum of Understanding ("MOU") with Phoenix Biomass Energy ("Phoenix"), a California based power company, to supply its proprietary EQTEC Gasifier Technology ("EGT") for two power plants in California, USA.
Ian Price, CEO of EQTEC plc, commented: "We are delighted to be the exclusive supplier of technology to Phoenix Energy. The USA is a key country for waste to gasification technology and we are excited to be entering this market with our first project with Phoenix Energy.
"These Californian projects are exciting opportunities for EQTEC and we're extremely proud to be selected by Phoenix. This demonstrates the flexibility of EQTEC technology and our ability to be commercially competitive in delivering projects of differing scale and operating on many fuel types globally.
"We are pleased to have been chosen by Phoenix Energy for the Californian projects and our new relationship with them supports our goal in making EQTEC the industry leader of energy from waste technology. The Company continues to make good progress in pursuing significant opportunities in the near term and we hope this is the start of a significant growth period for EQTEC."
Key Elements of the MOU
· Two contracts collectively are expected to be valued in the region of EUR10 million
· Phoenix considers EQTEC as the exclusive technology supplier of a 2MWe gasification plant and a 3MWe gasification plant for the 12 months from the date of the MOU
· Phoenix is responsible for obtaining the permits, licences and authorisations ("PLA"), Power Purchase Agreements ("PPA") and Feedstock Agreements for both projects which are anticipated to be in place in Q4 2018
· Phoenix or any third party associated to Phoenix to provide the necessary equity and debt financing for the projects
· Financial close is expected in late Q4 2018 and the purchase contracts executed shortly thereafter
Subject to the outcome of these first two projects, Phoenix has indicated their desire to utilise EQTEC technology and equipment on other future projects in the USA in respect to its development pipeline that utilises gasification technology.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
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Enquiries
EQTEC plc | +353 (0)21 2409 056 |
Ian Price - Chief Executive Officer Gerry Madden - Finance Director |
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Northland Capital Partners Limited - Nomad and Joint Broker | +44 (0)20 3861 6625 |
Tom Price / Dugald J. Carlean |
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VSA Capital Limited - Financial Adviser and Joint Broker | +44 (0)20 3005 5000 |
Andrew Monk / Andrew Raca |
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Luther Pendragon - Financial PR | +44 (0)20 7618 9100 |
Harry Chathli / Alexis Gore |
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Notes to Editors
About EQTEC plc
EQTEC's business model involves sourcing and providing assistance in developing waste elimination projects to which it will ultimately sell its EQTEC Gasifier Technology ("EGT") and O&M services. EGT enables project developers to construct waste elimination plants and recover electrical and thermal energy from the waste streams.
EQTEC sources projects that have a local supply of waste in need of elimination and conversion. It builds relationships and brings together the developers, the waste owners, the building contractors and funders. It then supplies the energy recovery technology and provides engineering services to the projects. Furthermore, EQTEC will provide O&M services to the operating projects generating recurring revenues over the life of the projects.
The Company is quoted on AIM and trades as EQT. Further information on the Company can be found at www.eqtecplc.com
About Phoenix Energy
Phoenix Energy is a US based private label power company that builds, owns and operates on-site biomass gasification plants in partnership with businesses in the Agricultural, Waste, and Forestry industries. Phoenix Energy helps its partners become their own energy provider, selling energy at retail rates. Phoenix Energy is first and foremost a distributed generation ("DG") power company that sells KW over iron. They combine proven technologies to provide themselves, their partners, and their customers with profitable on-site power.