TIDMEQT
RNS Number : 7593Z
EQTEC PLC
16 January 2024
16 January 2024
EQTEC plc
("EQTEC", the "Company" or the "Group")
Drawdown of Bank Refinance Approved for Italy Market Development
Centre
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 confirm that Banca del Fucino S.p.A., a
historic private banking group based in Rome, (the "Lender") has
approved the Company's drawdown of a loan facility of EUR2.9
million announced by the Company on 4 September 2023 (the
"Facility") (the "Approval").
The Facility will provide financing for EQTEC Italia MDC Srl
("Italia MDC"), which owns the Italy Market Development Centre,
located in Gallina, near Castiglione d'Orcia, Tuscany, Italy (the
"Plant"). As announced by the Company on 21 December 2023, Italia
MDC has completed a series of operational performance improvements
and achieved the performance criteria set by the Lender. The
Approval has been confirmed following the Lender's visit to the
Plant on 10 January 2024, at which it was accompanied by Italia MDC
staff and shareholders, including the Company.
As previously announced, the term of the Facility is 48 months,
with an annual interest rate of 2.5% over the six-month Euro
Interbank Offered Rate (Euribor), which is currently c. 3.9%. The
loan is guaranteed up to 80% by MedioCredito Centrale S.p.A., which
is controlled by the Italian Ministry of Economy.
Italia MDC intends to draw down the Facility in full imminently
to support the Plant's business plan and to fund additional
performance improvements as Italia MDC pursues further operational
efficiency and commercial opportunities. Part of the Facility will
also be applied towards repayment of shareholder loans that have
funded the project to date, including part of the c EUR2.6 million
loans made by the Company.
The Plant became operational in March 2023 and EQTEC completed
handover protocols and transfer of plant operations to Italia MDC i
n June 2023.
David Palumbo, CEO of EQTEC, commented:
"We are delighted to have achieved this significant milestone
with Italia MDC. The whole team at EQTEC and Italia MDC have worked
relentlessly, aligning technical, operational and commercial
activities to achieve the outcome milestone. The financing by Banca
del Fucino, a traditional, primary lender, indicates their
confidence in our business proposition and underlines their
investment strategy toward new energy solutions and supporting
innovation. We remain committed to making Italia MDC a showcase of
local capability , with new energy infrastructure in Italy and a
demonstration of EQTEC syngas technology in a live, efficient and
sustainable business."
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 Italia MDC srl
EQTEC Italia MDC Srl ("Italia MDC") is a company registered in
Italy for the purpose of transforming agricultural and forestry
waste into electrical power and biochar in a relatively remote and
heaviliy agrarian community. The Company currently owns 49.0% of
Italia MDC, with an option to acquire further equity in future.
Italia MDC owns and operates a 1 MWe plant in Gallina (the
"Plant"), a village near Castiglione d'Orcia in Tuscany's Val
d'Orcia, an area considered to be the region's most scenic. It is
on a site originally owned by Toscana Cereali Societa' Cooperativa
Agricola, from whom Italia MDC is currently leasing and with whom
Italia MDC have agreed to purchase the land by 30 July 2024. With
EQTEC technology at its core, the Plant is capable of converting
multiple types of biomass feedstock into electrical power and
thermal energy.
Initially, the Plant is converting higher-density wood waste
into electrical power for export to the national grid, for which a
connection has been secured with a preferential tariff. In addition
to the electricity, the Plant is producing biochar for purchase by
two European wholesalers of the product. Thermal energy produced
through the continuous EQTEC thermochemical conversion process is
being recycled to dry the feedstock, improving the Plant's
waste-to-energy conversion efficiency.
Feedstock is being delivered by multiple suppliers, and Italia
MDC has identified additional, potential suppliers in order to
maintain continuity of supply and leverage over cost and
availability. Further, the Plant has been upgraded to support
lower-density feedstocks such as straw or other agricultural waste.
This ability to switch amongst feedstock types and suppliers adds
resilience to Italia MDC's business model.
About Market Development Centres (MDCs)
MDCs are reference plants that demonstrate EQTEC technology in
live, commercial environments, with application of EQTEC's
versatile syngas to one of four, target solution models:
Industrial; Utility; Municipal; or Agricultural. The Italia MDC is
focused on the Agricultural solution model, which demonstrates the
potential for smaller-scale, autonomous plants in remote areas to
convert agricultural and forestry biomass into value for the local
community.
The Company has accommodated a number of visits to Italia MDC by
prospective investors and partners, since March, and has already
scheduled a number of further such visits, including with top-tier
utilities companies, infrastructure investors and a consortium of
private investors with whom the Company is in discussions towards
funding and sale of equity in Croatia MDC.
The Company is targeting launch of the Croatia MDC later this
year in Belišće, Croatia, to demonstrate the Industrial solution
model, converting industrial waste from a nearby paper mill into
electrical power and biochar, returning the former to the paper
mill and selling the latter on the open market.
A third MDC is being pursued in eastern France that would
demonstrate the Utility solution model, helping utility companies
decarbonise their plant footprints and create new energy
infrastructure for new lines of business in a post-fossil fuel
world. The France MDC is expected to become operational in
2024.
About EQTEC plc
As one of the world's most experienced thermochemical conversion
technology and engineering companies, EQTEC delivers waste
management and new energy solutions through best-in-class
innovation and infrastructure engineering and value-added services
to owner-operators. EQTEC is one of only a few technology providers
directly addressing the challenge of replacing fossil fuels for
reliable, baseload energy. 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, specifies and delivers clean, syngas production
solutions in the USA, EU and UK, with highly efficient equipment
that is modular and scalable from 1MW to 30MW. EQTEC's versatile
solutions process 60 varieties of feedstock, including forestry
waste, agricultural waste, industrial waste 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 the London Stock Exchange's Alternative
Investment Market (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
.
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