Last checked at 7 Dec 2023 07:00
07 December 2023
EQTEC plc
("EQTEC", the "Company" or the "Group")
New contract for engineering toward waste wood-to-electricity plant in California, USA
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 announce that it has signed an equipment supply agreement for engineering services and equipment supply (the "Agreement") for a plant in Wilseyville, California, USA that is being developed to cleanly convert approximately 25,000 tonnes per year of wood waste into synthesis gas ("syngas") to fuel a gas engine coupled to alternators for production of c. 3.0 MWe electricity (the "Plant"). The Plant would also produce c. 2,400 tonnes per year of saleable biochar for agricultural and other uses.
The Agreement is with Blue Mountain Electric Company LLC ("BMEC"), a project company set up and operated by Phoenix Biomass Energy, Inc. ("Phoenix"), a developer of renewable energy projects in California, especially in the Sierra and Central Valley where forest fires are prevalent, and where fire prevention is aided by the clearing and clean, safe disposal of forestry waste wood. Along with the Company, Phoenix is also one of three equity shareholders in the 2.0 MWe North Fork, California plant where the Company is also driving for commercial operations. The BMEC and North Fork projects apply similar EQTEC designs and capabilities and represent the first two in an expected series of potential, future projects for Phoenix and EQTEC in California.
The Company expects to commence basic engineering work in early 2024 and to invoice c. $330,000 (c. ?302,000) for this work, which the Company expects to complete in the first half of 2024. The Company and BMEC have also agreed a comprehensive quotation to deliver detailed engineering, equipment, construction advisory and commissioning services for approximately $10.3 million (c. ?9.4 million), should, inter alia, the requisite funding be secured by BMEC to enable the project to proceed. The Company will make further announcements if and when any work beyond basic engineering is agreed.
Jeff Vander Linden, Group COO, commented:
"We are pleased to finally execute this contract with BMEC. The opportunity to support forest fire prevention in California through the application of EQTEC technology for clean, safe disposal of forestry waste has long been an ambition for us. The Project has secured credible funding from national and state funding sources as well as private lenders, so we feel this work can proceed successfully. Although the North Fork project has taken much longer than we have liked, it has also allowed us to learn and improve project execution. It is on this basis that we very much look forward to pressing ahead with our second project in California."
This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No?596/2014, as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended, and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.
ENQUIRIES
EQTEC plc David Palumbo / Jeffrey Vander Linden
| +44 20 3883 7009 |
Strand Hanson - Nomad & Financial Adviser James Harris / Richard Johnson
| +44 20 7409 3494 |
Global Investment Strategy UK Ltd - Broker Samantha Esqulant
| +44 20 7048 9045 |
Fortified Securities - Broker Guy Wheatley
| +44 20 3411 7773 |
Panmure Gordon - Broker John Prior / Hugh Rich
| +44 20 7886 2500 |
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 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.