Eqtec Regulatory News (EQT)

31 October 2022

EQTEC plc

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

R&D facility successfully upgraded for hydrogen and RNG testing

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 the successful completion of steam-oxygen gasification tests that confirm the suitability of EQTEC's synthesis gas ("syngas") technology for advanced biofuels production.

The tests were undertaken at EQTEC's technology innovation facility in France, 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. Two series of tests were conducted in the first half of October 2022: one using established air-blown gasification configuration with refuse-derived fuel ("RDF"), based on equipment and an approach previously applied by EQTEC at LERMAB; the other test applying steam-oxygen capability made possible by equipment upgrades by EQTEC at the facility.

Air-blown gasification supports electrical power and thermal energy applications, where the mix of hydrogen, methane and carbon dioxide in the syngas is less critical for the offtake application. Steam-oxygen gasification supports hydrogen, renewable natural gas ("RNG") and other advanced biofuel applications, where optimisation of the hydrogen, methane and carbon dioxide mix is critical for efficiency and productivity of the offtake.

The upgrade to the LERMAB facility and both tests were implemented as part of EQTEC's technology innovation programme, as indicated in the Company's 2021 annual results and H1 2022 interim results. An independent report with detailed and definitive conclusions from the test results is expected to be issued by UL before the end of 2022.

The Company expects the upgrade for steam-oxygen gasification to continue attracting the attention of strategic and technology partners with interest in conducting trials of new energy infrastructure for hydrogen, RNG and other advanced biofuels, based on EQTEC technology. Such tests are already scheduled for the first half of 2023.

Steam-oxygen gasification

One of the greatest challenges for steam-oxygen gasification is efficient distribution of oxygen across the fluidised bed in the gasification reactor. Historically, most trials of this approach, by a range of research institutes and companies, have failed to achieve this, resulting in lower feedstock conversion efficiency, a lower quality syngas and thus a lower production and/or efficiency of hydrogen, methane or other offtake.

The tests by EQTEC with ERBE in October 2022 represented the integrated team's first attempt with steam-oxygen gasification at the LERMAB facility, based on the new upgrades. The test was very successful, with strong stability in fluidisation and gasification temperature, which together indicate highly efficient oxygen distribution and feedstock conversion.

Critically, syngas analysis indicated a clear increase in hydrogen concentration relative to that for air-blown gasification. The capability of EQTEC's advanced gasification technology to increase hydrogen production in this way indicates it is able to manipulate the thermochemical conversion process so as to maximise specific components of the syngas for greater production of advanced biofuels and chemicals.

These tests, analyses and data generated will support refinements to EQTEC's proprietary process design, computational modelling and control systems in the interest of supporting a range of offtake application.

Air-blown gasification of RDF

The successful tests of EQTEC's air-blown gasification process technology follow similar, successful tests with RDF completed by the Company and ERBE in 2021, as well as successful tests with contaminated plastics completed in December 2021.

The specific RDF used for the tests was provided by a prospective customer of EQTEC technology. Throughout the entirety of the air-blown gasification testing period, EQTEC technology provided consistently strong conversion results. The tests achieved their two primary goals of establishing and maintaining efficient gasification and smoothing the RDF feeding-in system.

The analyses and results they produced provide further validation of EQTEC's proprietary, kinetic computational model and support continuous improvement of EQTEC's patented and proprietary process designs.

Yoel Alemán, CTO of EQTEC, commented:

"These tests are another important milestone for us in our technology innovation roadmap. As the demand increases for highly efficient and clean conversion facilities for hydrogen, RNG and advanced biofuels, and as industrial clients, utility companies and municipalities look for scalable, local-to-local solutions, EQTEC's capabilities with both air-blown and steam-oxygen gasification will allow us to offer a range of solutions that fit a range of business models. There are few, successful steam-oxygen gasification facilities in the world, and we believe our success with these tests puts us at the forefront of clean, waste-to-value capabilities. From a technical perspective, we were pleased at how smoothly the technology performed throughout. The data we gathered will allow us to fine-tune our proprietary process capabilities and we can look forward to applying the new knowledge to future testing for prospective customers."

Yann Rogaume, Professor and Head of the ERBE Team, commented:

"Hydrogen is the future of energy, and these most recent augmentations to the technology and automation will help us optimise hydrogen and advanced biofuels for a range of interesting tests and results. The syngas produced through EQTEC's technology can be used directly or easily transformed into hydrogen, methane or other biofuels, and from a wide range of fuels including biomass, RDF, plastics and others."

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

About EQTEC's relationship with Université de Lorraine

The Company has for 10 years worked 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 the Université de Lorraine in Nancy, France to pursue research and development of syngas production based on EQTEC's advanced gasification technology. The partnership supports both parties' understanding of a greater range of biomass and waste feedstocks and a greater range of syngas applications, including generation of electricity and heat and production of renewable methane and hydrogen.

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 renewable 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.