LONDON: EQTEC plc has signed a Share Purchase Agreement (SPA) with Logik Developments Limited to acquire full ownership of the Deeside Refuse Derived Fuel (RDF) project from Logik through the acquisition of Logik WTE Limited.
The Project is part of a portfolio of projects currently under review by a European owner-operator of waste to energy infrastructure, which is expecting, assuming, inter alia, completion of final credit review and finalisation of documentation, to provide the financing required for the construction phases and commercially operate the plants and this Project via investment into Deeside.
Assuming the requisite financing is provided, EQTEC expects to act as the project developer on the Project, providing the design and core advance gasification technology and retain a portion of the O&M contract.
Conversations with potential EPC companies are ongoing and the documentation required for tendering the EPC contract for the first phase of the Deeside RDF Project is currently being produced.
Once full commercial EPC offers are reviewed and negotiated to contract, a final decision will be reached with regards the funding structure for the Project, on which EQTEC will then provide an update to shareholders.
EQTEC and Logik are progressing discussions about a potential framework collaboration agreement that is expected to cover the keys terms of a proposed cooperation for the development of a portfolio of waste to energy projects that Logik is currently pursuing in the north of England and across the UK.
David Palumbo, CEO of EQTEC, commented: “We are pleased to have signed this SPA to acquire the Project SPV for the Deeside RDF Project after completing our due diligence, making good progress on funding discussions and shortlisting EPC companies for the Project.
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.”
Neil Spencer, Director of Logik, commented: “LOGIK secured planning on the proposed project site over 12 months ago and, together with EQTEC, we look forward to continuing to work closely with all local stakeholders to help ensure this project gets built and secures additional planning that will further enhance the benefits to the local community.
We are very encouraged to be working with a team with the experience and credibility of EQTEC and remain optimistic of what we expect to achieve in Deeside and in further potential collaborations with EQTEC on a portfolio of waste to energy projects that Logik is currently progressing in the north of England and across the UK.”
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