Eqtec Share Discussion Threads

[stevea171] 12/7/2021 11:52

The minutes of the NFCDC last meeting (see post 1190 above) have now been altered to delete all mention of progress with the project just leaving the who's who of participants.

I guess EQT have sent them a strongly worded letter pointing out the errors in their statement in line with the RNS issued this morning. Possibly threatening legal action if they don't retract their mis-statement of blame.

EQT holds 19.99% interest in the project atm which may increase to a majority interest subject to sign off.
The project goes back to at least 2016 and has been done on a shoe string because the finance has always been tight.

Also agree with Gspanner above that this was taken on by the 'old' EQT but would probably be declined if an initial approach was made today. EQT is persevering with it probably because it's a foot in the door to the wider California and US market with unlimited sales potential. There is a cost of entry to new markets and it seems that EQT considers the value of this as a finished and working project to showcase their technology is worth it.

[cmackay] 12/7/2021 11:46

Then we just haven't been to the same festivals, aja2 😁

[aja2] 12/7/2021 11:35

I've yet to meet a vegan who takes drugs though I'm sure they exist; most have ethical concerns but also take their health seriously so are actually pretty sharp and clear headed; on the face of it however this north fork group do seem a bit naive but we don't know all the details.

[rocketblast] 12/7/2021 11:21

Seems strange such a sell off but great opportunity to top-up at these prices which we may not see again. Great value and potential at these prices. Can shoot up very quickly…

[cmackay] 12/7/2021 11:16

Gspanner, I can see why you would say that and I tend to agree. Although it's a shame, as I grew up with a deep admiration and involvement with the 'grassroots' activism/collective/co-operative model. However I can certainly accept from experience that what it has in enthusiasm and idealism/ideology, it more than negates through naivety and lack of structure/organisation.

Realistically, this is a potential blip that may still work out, and with the pipeline eqt has I can't see any real alarm bells at this point, but perhaps it would have been better to start dealing with hippies 2 or 3 years after break even.

[stevea171] 12/7/2021 10:58

From LSE: Just to give an idea of the potential market in California....

From Align Research's Note March 2020,

'In particular, the Californian market offers many opportunities, especially in the area of managing waste wood, which can pose a serious threat of wildfire. The most recent drought in California caused the die off in excess of 100 million trees and wildfires are a common problem in the state. However, fewer than half a dozen small scale biomass plants exist. It is estimated that more than 100 plants would be needed just in the Sierra Nevada for effective management.

[volsung] 12/7/2021 10:54

Took a few more for 1.32p

[gspanner] 12/7/2021 10:47

Agreed - I would perhaps also suggest that if offered Northfork now EQT would politely decline the project given the somewhat naive approach of the committee: tend to go for commercial outfits with multiple commercial or bigger prospects.

[cmackay] 12/7/2021 09:12

The worst case scenario seems to be (please correct me if I've missed something) that if NFCP can't get their project management organised then the project may get sold off and they would be in a worse position for it. In that worst case scenario, eqt don't appear to come out any worse off. It's a shame for the community, of course. But where is the down side to eqt,other than uncertainty and perhaps delay?

[juju44] 12/7/2021 09:10

Agree with that

[m4rtinu] 12/7/2021 09:07

Good to get such a quick response. Hope problems can be sorted.

[aja2] 12/7/2021 09:06

Far better for immediate clarification than leaving people to come to their own conclusions.

[juju44] 12/7/2021 08:56

That didnt help . Just confirms its a mess

[stevea171] 12/7/2021 08:33

12 July 2021
EQTEC plc

("EQTEC", the "Company" or the "Group")

Clarification with respect to North Fork Community Power ("NFCP") project

EQTEC plc (AIM: EQT), a world-leading gasification solutions company building the future of a cleaner waste-to-energy industry, feels obliged to clarify certain matters with respect to recently published minutes on the website of North Fork Community Development Council ("NFCDC"), following its Regular Board Meeting held on 28 June 2021 (the "Minutes").

The Minutes contain some claims in relation to North Fork Community Power LLC ("NFCP"), its partners, its funding and management of the project underway to build a 2MWe plant based on EQTEC technology and that will transform locally sourced forestry waste into power and biochar for the local community whilst reducing the risk of forest fires in the area ("the Project"). As some of the comments in the Minutes suggest a lack of understanding of project accountabilities and contractual relationships, the Company has written directly to NFCDC to clarify these points and express its concerns.

NFCDC is a volunteer-led, not-for-profit, local, community initiative formed to promote in particular the old mill site on which the Project is located. The members of NFCDC are primarily residents in the North Fork area of California. NFCDC is, like the Company, a Managing Member of NFCP.

EQTEC would like to clarify that it is the technology provider to the Project and has no role or scope in relation to project management. In its role as a Managing Member and equity owner in NFCP with a vested interest in the success of the Project, the Company has consistently driven NFCP to appoint dedicated, professional Owners Representatives and Project Managers to improve discipline, focus and risk management on the Project. Since 2020, EQTEC has taken the lead in sourcing, vetting and introducing to NFCP professional candidates to carry out this role, even advancing the funds to NFCP to pay their fees.

Based on its continued interest and investment in the Project, the Company has also taken a lead in bringing all investors and stakeholders into negotiations aimed at ensuring the Project is fully funded and can proceed with construction, commissioning and live operations. The Company has made a non-binding proposal to provide requisite funding, as a convertible loan facility, to take the Project to completion ("the Proposal"). The proposed facility, if fully drawn down and converted, would result in the Company taking a controlling interest in NFCP and the Project.

The Proposal was signed by all Managing Members of NFCP, including NFCDC. The terms are currently undergoing final negotiations for legal execution and the Company anticipates this will conclude shortly, so that accelerated, focused work can continue at pace on the Project.

David Palumbo, CEO of EQTEC, commented:

"We remain fully committed to the North Fork community and value our relationship with North Fork Community Development Council, our fellow Managing Member for NFCP. The plant at North Fork, enabled by EQTEC's Advanced Gasification Technology, is the beginning of our efforts to generate cleaner energy for California and reduce the risk of forest fires, through clearing out forestry waste and putting it to constructive use. It is our hope that the North Fork plant becomes another Market Development Centre ("MDC") for us that allows us to bring our capabilities to more communities across the state."

[bobdouthwaite] 12/7/2021 08:11

EQT issues clarification on North Fork minutes:

[hoper1] 12/7/2021 08:11

Well done David. A speedy and positive response and explanation.

[aja2] 12/7/2021 07:22

Indeed. Very comprehensive.

[gspanner] 12/7/2021 07:20

As good a riposte as possible I think!

[hoper1] 11/7/2021 13:31

As the comment about North Fork is in the public domain I think David needs to make a statement clarifying things. We have a reputation to uphold.

[juju44] 11/7/2021 09:36

"At this point, Phoenix Energy and EQTec are the cause of serious mis-management"

Seems pretty clear to me .

[marktime1231] 10/7/2021 23:48

Thank you for david posting the notes from North Fork, we knew there were funding discussions and that investors or the community were getting cold feet, they indicate the problem is with infrastructure construction rather than the plant. I note the comment that construction is progressing, so there must be an outcome available, quite a number of organisations involved though.

If there is a workable business case and given what has been invested and delivered so far it could indeed turn out to be another opportunity where EQT can get things operational. If not presumably the plant could be deployed elsewhere.

So there was no need for fear mongering rumours juju, if you had something to report why not post the information instead of whispering rumours about things falling apart based on not sure what "if true".