7th Sep 2020 17:43
EQTEC PLC - waste-to-energy project developer based in London - Signs co-development and option agreement with Rotunda Group Ltd and subsidiary Shankley Biogas Ltd for the Southport Hybrid Energy Park project. EQTEC and Rotunda are to jointly develop a waste management project which EQTEC has the option to acquire. EQTEC is to cover all development costs pre-financial close, estimated to be around GBP500,000 and will receive at financial close a return on invested funds in the form of a development fee of no less than two times the funds it invests. Rotunda has the option to participate in the project's development capital and would then receive a proportional fee. Rotunda is to receive a GBP100,000 from EQTEC in consideration for the exclusive option for acquiring Shankley Biogas, the special purpose vehicle which will hold the project. This will be treated as the development cost of the project. The exclusivity period is 12 months and can be extended. EQTEC will seek planning permission so that its advanced gasification technology can be applied to the project.
Chief Executive Davis Palumbo says: "I am delighted to announce this exclusive partnership to develop the hybrid energy park in Southport, Merseyside, UK, which underlines EQTEC's strategy of engaging in partnerships with strong local players in energy infrastructure which are already in advanced stages of the planning and permitting process, and where EQTEC can add value with its proven, proprietary and patented advanced gasification technology and solutions. In this way, EQTEC can significantly improve both the environmental impact and the economics of many traditional waste-to-energy facilities, whilst potentially delivering attractive returns to EQTEC and our shareholders."
Current stock price: 0.57 pence
Year-to-date change: Up more than 100%; December 31 share price 0.12 pence
By Anna Farley; [email protected]
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