27 March 2023
("EQTEC", the "Company" or the "Group")
France project award for waste-to-RNG plant with Idex Group
EQTEC plc (AIM: EQT), a global technology innovator powering distributed, decarbonised, new energy infrastructure through its waste-to-value solutions for hydrogen, biofuels, and energy generation is pleased to announce that it has been awarded a project in partnership with French utility company and infrastructure owner Idex, by the Limoges Métropole ("Limoges Metropolis") in Nouvelle-Aquitaine, France (the "Project").
The Project, to be developed by Idex with engineering and technology from EQTEC, is expected to result in a plant able to convert up to 45,000 tonnes per year of mixed waste, including contaminated wood waste, into up to nine million normal cubic metres per year of renewable natural gas ("RNG") (the "Plant). Once operational, the partners expect that Idex will own and operate the Plant.
The Project was awarded to the Company and Idex through a competitive tender and panel interview process that completed in late 2022. In addition to the French national government and expert engineering laboratories, the panel included Gaz Réseau Distribution France (GrDF) SA, France's primary natural gas distribution network operator and the Nouvelle-Aquitaine regional government, both of whom will supply funding to the Project. The Company and Idex worked together throughout the process, with a joint submission and presentation that won approval over competing bids. Limoges Metropolis has reserved the right to join a consortium with the Company and Idex as the project develops.
The Project supports the Company's business strategy and is an important next step for demonstrating EQTEC's capabilities with applying its versatile synthesis gas ("syngas") technology to a variety of applications, including RNG. It builds on the waste wood conversion capabilities it is applying at its France Market Development Centre ("MDC") in Villers-sous-Montrond, France and on the steam-oxygen capabilities it installed in 2022 at its R&D facility hosted by the Université de Lorraine in Épinal, France. It also builds on the RNG trials targeted for investment by the Company from the recent fundraise announced on 21 March 2023.
The Company expects financial close for the Project to occur in the second half of 2024 with the Plant completing construction and commissioning by early 2026, for live operation in the first half of 2026.
David Le Saint, EQTEC Market Lead for France, commented:
"The Project represents a major win for EQTEC and the first formal collaboration with a significant partner in Idex. The RNG market in France has substantial growth potential as the country moves to set its first RNG feed-in tariff later this year, further supported by the anticipated announcement from European Sovereign funds to accelerate project financing. EQTEC is already pursuing several RNG opportunities in addition to the Project and will make the most of the momentum toward RNG.
In addition to positioning itself as an innovative, decarbonising energy company, Idex has been a constructive and valuable partner to the Company and represents a strong, future route to market for EQTEC technology as well as a collaborator in deploying our Utility solutions and a well-known name with the capability to develop, own and operate a portfolio of plants with EQTEC technology."
Stéphane Guillet, Idex New Energy Vectors Director, commented:
"Idex has a strong record deploying innovative technologies, which is closely aligned with EQTEC's leading expertise and clean syngas technology. Idex has committed itself to evolving its own business model to bring on new technologies that decarbonise France's energy footprint and deliver sustainable infrastructure to support baseload requirements. We look forward to continued collaboration with EQTEC and to making the Limoges project a success together."
This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014, as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended, and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.
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The communauté urbaine Limoges Métropole ("Limoges Metropolis") is a community of municipalities that includes the City of Limoges and surrounding, suburban municipalities. It is in the Haute-Vienne department, in the Nouvelle-Aquitaine region, in southwestern France. Occupying an area of 520.6 square kilometres, its total population was 207,385 in 2018, of which 131,479 resided within Limoges city limits.
In 2021, Limoges Metropolis adopted a Climate-Air-Energy Plan for the Area (the "Plan"), which set a target for annual energy production of 1,000 gigawatt-hours ('GWh") from renewable sources, including production of biogas and specifically, a renewable natural gas ("RNG") capability. The feasibility study undertaken as part of deployment of the Plan concluded that 40,000 tonnes per year of feedstock per year could be made available for waste-to-RNG conversion, of which up to 60% would be Grade B wood waste.
Founded in France in 1963, Idex develops, designs, finances, builds and operates local energy and carbon-free infrastructure, which provides renewable heat and local electricity supply to buildings, cities & industry.
With 5,700 employees and a turnover of €2 billion in 2022, Idex is currently the only vertically integrated market operator delivering the complete value chain for local energy provision. The Group is involved in the production of thermal or electrical energy from local and low-carbon energy resources (geothermal, solar, biomass, waste), the distribution of this energy through district heating and cooling networks, to its final use in industrial, residential and tertiary buildings and other applications.
About EQTEC plc
As one of the world's most experienced gasification technology and engineering companies, with a growing track record of delivering operational and commercial success for transforming waste-to-energy through best-in-class technology innovation, engineering and project development, EQTEC brings together design innovation, project delivery discipline and solid commercial experience to add momentum to the global energy transition. EQTEC's proven, proprietary and patented technology is at the centre of clean energy projects, sourcing local waste, championing local businesses, creating local jobs and supporting the transition to localised, decentralised and resilient energy systems.
EQTEC designs, supplies and builds advanced gasification facilities in the UK, EU and US, with highly efficient equipment that is modular and scalable from 1MW to 30MW. EQTEC's versatile solutions process over 50 varieties of feedstock, including forestry wood waste, vegetation and other agricultural waste from farmers, industrial waste and sludge from factories and municipal waste, all with no hazardous or toxic emissions. EQTEC's solutions produce a pure, high-quality synthesis gas ("syngas") that can be used for the widest range of applications, including the generation of electricity and heat, production of synthetic natural gas (through methanation) or biofuels (through Fischer-Tropsch, gas-to-liquid processing) and reforming of hydrogen.
EQTEC's technology integration capabilities enable the Group to lead collaborative ecosystems of qualified partners and to build sustainable waste reduction and green energy infrastructure around the world.
The Company is quoted on AIM (ticker: EQT) and the London Stock Exchange has awarded EQTEC the Green Economy Mark, which recognises listed companies with 50% or more of revenues from environmental/green solutions.
Further information on the Company can be found at www.eqtec.com.