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EQTEC forms 'strategic alliances' and secures sale to Welsh project
Industrial waste management company EQTEC has signed a new memorandum of understanding (MOU) with a consortium containing biomass power plant operator Brooke Energy and RAFAKO SA.
Under the terms of the MOU, the company will sell its EQTEC Gasifier Technology (EGT) to RAFAKO, an engineering, procurement and construction contractor, for the power plant being built at the Usk site in south east Wales.
The facility would have the capacity to process approximately 42,000 tonnes of wood waste per annum and a power output of 6.4 MWe.
The commencement of the project is expected to be in the first half of 2018, with revenues from the project projected to be approximately 11m.
Luis Sanchez, chief executive of EQTEC, said: "The objective of our strategy of forming strategic alliances with major players in the energy infrastructure sector such as COBRA, Energy China and RAFAKO is to accelerate growth and increase scale in order to take advantage of the lack of domestic incineration and gasification capacity that is forcing the UK to pay European incinerators to take its waste."
Aside from the Usk project, EQTEC subsidiary Reliable Energy is developing projects with Energy China at Melton Hull and Seal Sands in the north east of England where two 16 MWe energy from waste plants are being constructed.
With projected investment of 210m, the projects are expected to commence within the next three months and to yield a turnover of 38m every two years.
As of 1420 GMT, EQTEC's shares were up 1.96% at 1.25p.