Eqtec reports progress at Italia MDC project

The AIM-traded firm said it expected a commercial operations date for the plant to fall in early 2023.

Further to its project status update on 22 November, the company said it could now confirm that all equipment had been delivered to site, installed and individually tested.

The board described it as a “major milestone” where all mechanical and electrical components were in place and installed, with all enhancements to the plant - including the additional feed-in system, the dryer and the thermal oxidiser - added to improve the resilience of the plant's business model.

Work at the plant had proceeded in a timely way, but due to supply chain delays and the late arrival of critical components, the unavailability of suppliers to support testing of ancillary equipment and recent weeks of severe weather at the site, final performance testing and a commercial operations date would be completed early in the new year.

The company said it intended to continue communicating its progress with Italia MDC, in the run-up to full operation.

Italia MDC would be the company's first such facility, and was pursuing construction and commissioning of additional MDCs in Croatia, France and the UK.

“Work has proceeded at pace, with our team responding decisively and effectively to the tactical situation on site caused by adverse weather conditions and availability of external suppliers,” said chief technology officer Yoel Alemán.

“I am pleased that everything is now installed and commissioned and I am proud of the team's hard work in getting us to complete the construction of our first MDC in 2022.”

Alemán said the firm expected early in the new year to carry out the biochar test required for the offtake contract, and to start the export of electricity to the grid under the existing power purchase agreement.

“The trying conditions have revealed the dedication and resilience of the plant's commissioning and operations team, for which we are grateful, and I am confident they will successfully operate a productive and profitable Italia MDC.”

At 1314 GMT, shares in Eqtec were up 3.57% at 0.29p.

Reporting by Josh White for Sharecast.com.