Gasification Tech Solutions Company, EQTEC PLC (AIM:EQT) has announced that through the acquisition of Logik WTE Limited, it has signed a share purchase agreement to acquire full ownership of the Deeside Refuse Derived Fuel Project.
The company said the latest acquisition is part of its portfolio, which is currently reviewing waste to energy infrastructure. Assuming the necessary funds are in place, EQTEC expects to act as the developer of the project, provide design and core advanced gasification technology, and retain part of the O&M contract.
EQTEC said conversations with potential EPC companies are currently underway and the documents required to bid for the first phase of the Deeside RDF project are currently being prepared. Once the EPC offer is reviewed, the company reaches a final decision regarding the project’s funding structure.
Additionally, the company and Logik are also discussing the Framework Collaboration agreement, covering the proposed cooperation for the development of the waste portfolio that Logik is currently pursuing across the UK.
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Commenting on today’s acquisition, EQTEC CEO David Palumbo said: project. By applying EQTEC’s advanced gasification technology, the project estimates that it will convert otherwise hundreds of thousands of tons of daily household and commercial waste per year for landfill and incineration. ”
“As such, EQTEC expects to be able to significantly improve both the economic and environmental impact of the facility from this plant and many traditional waste to energy, and to the local and economic and environmental aspects. It brings both employment and community and economic and environmental benefits. While large industrial energy users provide attractive returns to EQTEC shareholders.”
The Deeside RDF project consists of 6.27 hectares of land from the Deeside Industrial Estate. The company said gasification etching will be applied to the project and is seeking additional planning permission to reduce the potential environmental and cost impact.
Currently, EQTEC predicts that the project will convert hundreds of thousands of tons of non-recyclable waste into 20mW of green electricity per year.
The company said it could export electricity and heat to the grid or sell it locally. As we already recognize the interest from large industrial energy users in the area, our preference is to use surplus electricity and heat to create private wires and thermal networks.
The company’s statement added: “EQTEC estimates that the additional capacity for waste heat conversion utilizing the group’s pre-gasification technology will generate additional revenue for the Project SPV: electricity sales and heat of up to £1.5 million.”
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The spa is scheduled to be held for the initial £2.31 million consideration, with a deposit of £300,000 and an outstanding balance paid within 12 months of signing the spa. This is followed by a deferred conditional consideration of £2.29 million to be paid for projects that achieve certain milestones.
Additionally, a fixed dividend share is issued to Logik and gives you the right to 5% of your distributable EQTEC profit, but we have no right to vote. Finally, there is an additional development premium or overpayment paid for achieving two financial situations.
Logik Director Neil Spencer added: Plans to further increase benefits to the local community. ”
“We hope to work with our team with experience and reliability at EQTEC and achieve it at Deeside, and Logik’s portfolio of waste projects to its ongoing energy projects. We are highly encouraged to remain optimistic about further potential collaborations in Northern England and across the UK.”
