13th Nov 2019 12:14
(Alliance News) - Eqtec PLC on Wednesday said it has agreed for the development of a proposed 1.18 megawatts net biomass gasification power plant project in Gratens, France.
The technology solutions provider said the contract was signed between its subsidiary Eqtec Iberia SLU and the Barthe family, owners of Biomasse 31.
Under the deal, the parties will work towards definitive legal documents pursuant to which they will invest in the special purpose vehicle in order to achieve financial close of the project. The nature and quantum of such investment, and the share of such funding between the parties, is yet to be determined, Eqtec said.
Eqtec said it will provide its gasification technology for the project at a fixed cost, with Eqtec Iberia acting as project manager.
Eqtec Iberia will also incur costs of up to EUR100,000 before financial close for the provision of the engineering services, which is proposed to be repaid to Eqtec Iberia on financial close at a two times multiple.
"We have been in discussions with the Barthe family since the beginning of the year and we are delighted that the they have been strong advocates of our technology," said Eqtec Chief Executive David Palumbo.
"We strongly believe that our potential market in France is only starting to open up and the project, combined with our presence at Lorraine, can act as the foundation for growth and development in the region," added Palumbo.
Eqtec shares were trading flat in London on Wednesday at 0.09 pence each.
By Evelina Grecenko; [email protected]
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