Eqtec Regulatory News (EQT)

5 May 2023

EQTEC plc

("EQTEC", the "Company" or the "Group")

Audited results for the year ended 31 December 2022

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 announces its audited results for the year ended 31 December 2022, with post-period progress.

Financial highlights

· Revenue and other operating income: €8.0 million (2021: €9.2 million)

· EBITDA loss before significant and non-recurring items: €4.9 million (2021: €3.8 million)

· Net assets: €37.1 million (31 December 2021: €43.4 million)

· Capital raise of £3.7 million (€4.2 million) through the placing of new shares

· Two loan facilities secured: one for up to £10 million (€11.3 million) and the other for £2 million (€2.3 million)

The net loss including significant and non-recurring items was €10.5 million (2021: €4.7 million), which included an investment impairment of €4.7 million in relation to the North Fork project in California.

Commercial and operational highlights

· Strong progress with Market Development Centres ("MDCs"):

· Italy MDC construction completed, and commissioning commenced.

· Croatia MDC funding identified for final construction and recommissioning.

· France MDC acquired, and project buyer identified for sale of the project.

· EQTEC France launched as wholly owned subsidiary, with strong pipeline of projects particularly focused on renewable natural gas ("RNG") and advanced biofuels.

· Contaminated plastics added to EQTEC feedstock library after testing success, followed by collaboration agreement with French waste management company toward future plants.

· EQTEC R&D facility at Université de Lorraine ("UL") upgraded to support steam-oxygen gasification capabilities for testing of advanced biofuel solutions.

· Deeside project (UK) completed initial FEED, Livadia project (Greece) achieved 80% funding.

· North Fork project (USA) refinanced, and construction restarted; Southport and Billingham projects (UK) restructured to reduce EQTEC liabilities whilst maintaining rights to development fees due.

David Palumbo, CEO of EQTEC, commented:

"EQTEC in 2022 reaffirmed its business strategy, strengthened its growth platform and toughened its resolve. Based on having one of the few technologies of its kind with a proven track record, we focused our energies on ensuring we can truly make our technology available, reliably and consistently, for the several business models we support in the world of new energy infrastructure.

We delivered focused, formative progress in three key areas of our business strategy. First, we pushed ahead with three MDCs, as demonstration of EQTEC's versatile syngas solutions in live, reference plants that deliver attractive returns through a variety of business models. Second, we took further steps in retaining our technology leadership, deploying upgraded R&D capability for regular testing of solutions for advanced biofuels such as RNG, hydrogen, liquid fuels such as sustainable aviation fuel (SAF) and for chemicals such as ethanol or methanol. Third, we released the Company from untenable liabilities in major projects and turned our attention to the Tier 1 and 2 leaders that will help us deploy our solutions through the world's best funded, best managed projects.

Our target remains making EQTEC a leading licensor and innovator of technology that delivers clean, baseload energy and biofuels solutions to the world's leading Industrial and Utility companies and to Municipalities and Agroindustry around the globe. To become that, we must be more than simply the leading innovator for waste-to-value solutions; we must also be known for deploying our technology through projects that consistently deliver on time, to budget and for plants that deliver healthy returns on investment, sustainably over their lifetimes."

Current trading and outlook

· France and Italy leading execution of EQTEC business strategy, combining advanced capabilities, demonstration of EQTEC technology and collaboration with top-tier partners:

· Mechanical and electrical completion of Italy MDC in 2022, followed by achievement of full operations in March 2023 with handover to the operating company expected imminently.

· Visits by prospective customers throughout 2022 and early 2023 to Movialsa plant in Spain and now also to Italy MDC in Tuscany, with a full slate of visits planned to Italy MDC in 2023.

· Acquisition of France MDC in July 2022, followed by engagement of prospective buyer, confirmation of planning, feedstock and offtake arrangements; project sale expected in H1 2023.

· Launch into the contaminated plastic waste treatment business in France with French partner SEPS in March 2022, following completion of successful contaminated plastic waste trials.

· Following a competitive tender win, EQTEC and French utility partner Idex awarded in March 2023 a waste-to-RNG project built on demonstrated R&D capabilities.

· Collaboration agreement in April 2023 between EQTEC and Poseidon LNG Hub, a sister company of Belleli Group and consortium including Linde, Wood, Alfa Laval and Chemprod.

· Built on collaboration agreement with major players, pipeline in Italy for at least four waste-to-RNG and waste-to-hydrogen solutions, also building on global partnership with Wood.

· Major UK, France and Ireland projects demonstrate EQTEC scale capability with target business models and top-tier customers:

· Reconfiguration of near-premise Industrial business model at Deeside, Flintshire, UK for a more cost-effective, dual-technology facility deploying Anaergia, Inc. anaerobic digestion technology and EQTEC syngas technology for power offtake by neighbouring Toyota Motor Company engine production plant; initial FEED completed by global EPC Black & Veatch.

· Updated financial modelling and development strategy for Billingham project, for an advanced facility that can support surrounding, large-scale Industrial offtakers in Teesside, with Petrofac appointed as the FEED partner and prospective EPC; engagement with neighbouring CF Fertilisers and other local players for purchase of advanced biofuels.

· Progress toward acquisition of project at decommissioned, large-scale coal-fired power station at Gardanne, France, secured in Q1 2023; EQTEC leading feasibility work for an early-stage design of a clean, syngas-based production of RNG or other, advanced biofuels in support of Industrial and/or Municipal offtake customers.

· Engagement underway toward Ireland-based projects in support of power, RNG or ethanol production to support Ireland's IT services industry, de-carbonise the national grid and create autonomous, sustainable alternatives to traditional energy solutions.

· Appointed top-tier investment bank to approach large corporates in the growing market for large-scale, new energy infrastructure such as RNG, hydrogen and liquid fuels with a mandate to identify strategic investors at individual project, project portfolio and/or Group levels.

· Continued commitment to innovation and applied R&D:

· Expansion of variable feedstock capabilities, including successful tests of plastics and polymers contaminated with fossil fuels and other chemicals that cannot be burned or put into landfill, and successful testing of high-humidity RDF (refuse-derived fuel).

· Expansion of R&D capabilities for advanced offtake applications such as RNG, hydrogen, liquid biofuels, ethanol, methanol and other chemicals, through upgrade of R&D facility at the University of Lorraine to accommodate steam-oxygen gasification technology.

· Active engagement of Wood VESTA technology for hydrogen or for RNG at multiple project opportunities, starting with Southport project in UK, with other opportunities in France, Italy.

· Collaboration agreement with CompactGTL for development of liquid biofuels through EQTEC syngas technology and CompactGTL gas-to-liquids technology, at UK pilot plant.

· Ireland project opportunity for development of integrated syngas-to-ethanol capability with new technology partner to be announced.

· Focus Plan in response to tighter market conditions, for prioritised, strategic execution:

· Portfolio prioritisation with focus on completion and live operation of MDCs in Italy, Croatia and France, followed by development of scale capabilities at large facilities in UK, France and Italy.

· Exited liabilities of €18 million+ through renegotiation of agreements at all three UK projects: Deeside, Billingham, Southport.

· Focus on core capabilities, bringing on top-tier development, project management, FEED and EPC partners to support EQTEC's design, engineering and technology integration.

Annual report

The full, 2022 annual report, which addresses all the points above and which details full, financial results and other performance outcomes for the Company, may be found on the Company's website at https://eqtec.com/investing-in-eqtec/

Additionally, the full2022 annual report for the Company is available at the following hyperlink: http://www.rns-pdf.londonstockexchange.com/rns/4892Y_1-2023-5-4.pdf

The principal financial tables, extracted from the Annual Report, are set out below:

Consolidated statement of profit or loss for the financial year ended 31 December 2022

Consolidated statement of comprehensive income for the financial year ended 31 December 2022

Consolidated statement of financial position at 31 December 2022

The financial statements were approved by the Board of Directors on 5 May 2023 and signed on its behalf by:

Ian Pearson David Palumbo

Non-Executive Chairman Chief Executive Officer

05 May 2023 05 May 2023

Consolidated statement of changes in equity for the financial year ended 31 December 2022

Consolidated statement of cash flows for the financial year ended 31 December 2022

ENQUIRIES

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