Eqtec agrees to buy Deeside refuse-derived fuel project

The AIM-traded firm said the project was part of a portfolio of projects currently under review by a European owner-operator of waste-to-energy infrastructure, which was expecting, assuming completion of a final credit review and the finalisation of documentation, to provide the financing required for the construction phases, and to commercially operate the plants and the project via an investment into Deeside.

Assuming the requisite financing was provided, Eqtec said it expected to act as the project developer, providing the design and core advance gasification technology, and to retain a portion of the operations and maintenance contract.

Conversations with potential engineering, procurement and construction (EPC) companies were ongoing, with the documentation required for tendering the EPC contract for the first phase of the Deeside RDF project currently being produced.

Once full commercial EPC offers were reviewed and negotiated to contract, a final decision would be reached with regards to the funding structure for the project, on which Eqtec would then provide an update to shareholders.

Eqtec and Logik were progressing discussions about a potential framework collaboration agreement that was expected to cover the key terms of a proposed cooperation for the development of a portfolio of waste-to-energy projects that Logik was currently pursuing in the north of England, and across the UK, the company’s board said.

“We are pleased to have signed this agreement to acquire the project special purpose vehicle (SPV) for the Deeside RDF Project after completing our due diligence, making good progress on funding discussions and shortlisting EPC companies for the project,” said chief executive officer David Palumbo.

“We estimate that, with the application of Eqtec’s advanced gasification technology, the project would convert hundreds of thousands of tonnes per year of non-recyclable everyday household and commercial waste otherwise destined for landfill or incineration.

“In this way, Eqtec expects to be able to significantly improve both the economics and the environmental impact of this plant and many traditional waste-to-energy facilities, bringing employment to the local area and economic and environmental benefits to both the local community and large industrial energy users, whilst delivering attractive returns to Eqtec’s shareholders.”

At 1420 GMT, shares in Eqtec were up 5.26% at 1p.