Eqtec Regulatory News (EQT)

26 September 2023

EQTEC plc

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

Project update:

Successful completion of feasibility work at Biogaz Gardanne

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 EQTEC France SAS ("EQTEC France") and its partners have successfully completed a technical and commercial feasibility (the "Feasibility") toward deployment of EQTEC solutions at the site of the former Gardanne power station (the "Project"). Completion of the Feasibility represents a critical step toward commencement of development and design work on what is expected to be a waste-to-renewable natural gas ("RNG") facility enabled by EQTEC's advanced syngas technology.

Through the Feasibility, awarded to and announced by the Company in March 2023, the Group and its partners reviewed feedstock and offtake markets and evaluated four potential technology and engineering solutions. Together with French development consultants S3D Ingénierie SAS ("S3D"), the Group concluded that a facility processing c. 80,000 tonnes per year of industrial waste wood Grade B would be optimal for sustainable production of RNG and generate a healthy return on investment. The Project is targeting deployment of an integrated solution applying EQTEC's syngas technology with global engineering leader and EQTEC partner Wood's VESTA methanation technology.

The Group expects initial front-end engineering design work (the "pre-FEED") for the Project to commence in the coming weeks, for which it expects to bill c. €250,000 for engineering services. Subject to completion of that work, the Company anticipates that it would lead full, front-end engineering design ("FEED") work, estimated by the Company to be worth at least €750,000 in fees, with the majority to be invoiced over the first half of 2024.

On 20 September 2023, EQTEC France and S3D presented their findings and recommendations to members of the French government and central administration, including the Cabinet of the Energy Transition Minister and the General Secretariat for Investment, which is overseen by the Prime Minister (the "Officials"). The Group received reassurance from the Officials that the Project enjoys a strong place on the French government's energy transition agenda for the Provence Alpes Côte d'Azur ("PACA") region and that the Group will have opportunities for further support from the French government at national and regional levels as it seeks to secure further funding for the Project company ("Biogaz Gardanne").

Practically, the Officials encouraged the Group to prepare its application to secure one of a limited number of feed-in tariffs for RNG injection into the gas network operated by GRTgaz SA ("GRTgaz"), the French natural gas transmission system operator. Additionally, the Officials supported the Group's intent to pursue grant funding under the Synthetic Biomethane funding programme, due for launch in the coming months.

The Group has filed a formal request for Biogaz Gardanne to be registered into the national grid capacity register, an act that would establish the Project's legal access to the GRTgaz network. In parallel, and toward securing additional funding for subsequent phases of the Project, the Group has approached a number of utility companies in France to gauge their interest in the Project.

On 16 October 2023, EQTEC France is scheduled to meet with local stakeholders at the PACA prefectural authority to present the outcomes of the Feasibility and the Group's perspectives on the Project.

The Company continues to work closely with Wood on engineering work for an integrated syngas-methanation solution for the Project.

David Le Saint, EQTEC France Managing Director, commented:

"With successful completion of the Feasibility, momentum is growing for the Project in terms of solution development, political support and investment attractiveness. Whilst we have already enjoyed support from all levels of French government, we are gaining traction also with private-sector investors looking to invest in new energy infrastructure that is clean and fits well with the direction of French policy. With the RNG tariffs for France due to be announced and with the healthy pace of work on this Project, I am confident we will secure a tariff, along with critical permits that move us closer to making Biogaz Gardanne a reality."

Jeff Vander Linden, EQTEC Group COO, commented:

"France has emerged as a reliable and enthusiastic supporter of technologies for the future of clean energy, including EQTEC's, and the Biogaz Gardanne project is clear evidence of that. France's rejection of coal-based energy generation, supported by policy and funding toward alternatives, give this project the motivation it needs to succeed. More than that, it indicates that with the right sponsorship and partners, EQTEC can make steady progress toward deploying its proven, patented technology in more places, more often."

ENQUIRIES

About the project

Gardanne, also known as the Provence power station, was an 850 MWe coal-fired power station owned by Gazel Energie France, the fourth largest provider of electricity and gas in France and a wholly owned subsidiary of Czech multinational energy infrastructure owner-operator Energetický a průmyslový holding, a.s. ("Group EPH"). Following its July 2019 acquisition of Gardanne and other assets previously owned by Uniper France, which coincided with the French government's pledge to phase out coal power by 2022, Group EPH closed the plant at the end of 2020 and in 2022 reopened part of the plant as a 150 MWe biomass incineration facility.

The Group was appointed in March 2023 by the French national government via the Préfet de la Région Provence-Alpes-Côte-d'Azur (the "Prefecture") to lead a technical and commercial feasibility on the site of a decommissioned, coal-fired power station in Meyreuil, Aix-en-Provence, Bouches-du-Rhône, France (the "Site"). 

The Feasibility was fully funded by national and regional governments under the Pact for Ecological and Industrial Transition of Gardanne-Meyreuil with an initial budget granted to EQTEC France of €1 million. EQTEC France SAS led the work, which explored the technical and commercial viability of a potential facility built around EQTEC technology, with particular interest in production of renewable natural gas from a variety of wood waste types. 

In July 2023, the Company confirmed it had successfully completed steam-oxygen gasification tests in partnership with the Energy from Biomass and Wastes ("ERBE") team, part of the Laboratoire d'Etudes et de Recherche sur le Matériau Bois ("LERMAB") at Université de Lorraine ("UL") in Epinal, France, as part of the Feasibility. The Tests confirmed that similar results to those achieved with EQTEC steam-oxygen gasification technology at the LERMAB facility can be directly applied at commercial scale, for the Project and other plants seeking to produce advanced biofuels.

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.