Eqtec Share Discussion Threads

[aja2] 06/2/2023 08:49

Why congest the BB when it's all in the RNS?

[stevea171] 06/2/2023 08:47

The rest of today's RNS not included above:
2022 performance and EQTEC's response

2022 revenues declined versus the prior year due to a slowdown in project progress driven by the dramatically reduced capital available to fund them. Geopolitical and post-pandemic economic challenges combined to restrict both the number of prospective investors and the size of their investments. Importantly, several of the Company's projects require only project finance to proceed, with many of them fully permitted, designed and otherwise packaged for financial close.

The Company responded to these pressures by implementing a Focus Plan, which reduced its portfolio of active projects to a small number of near-term, strategically important projects including Market Development Centres ("MDCs") in Italy, France and Croatia and the Deeside project in the UK ("Focus Plan"). In addition to reducing its workforce of external contractors supporting projects, the Company redeployed several of its permanent staff, including Company directors, onto critical projects. As part of the Focus Plan, the Company also renegotiated key contracts, which released it from large capital commitments. This reduced the Company's liabilities and accelerated its business strategy toward becoming exclusively a technology innovator and licensor by moving it away from project development obligations.

Additionally, the Company undertook a number of actions in 2022 to ensure business continuity in light of the economic downturn and tighter capital markets. On 29 March 2022, the Company announced that it had agreed provision of a new unsecured loan facility for up to GBP10 million with an initial advance of GBP5 million. On 14 July 2022, the Company announced that it had successfully raised GBP3.75 million (before expenses) through the placing of shares. This included subscriptions by five of six directors on the Board of Directors and followed investment in shares earlier in the year by CEO David Palumbo and COO Jeffrey Vander Linden. On 09 December 2022, the Company announced that it had entered into a loan facility with Altair Group Investment Ltd., the Company's largest shareholder. The facility provides the Company with an up to GBP2.0 million unsecured loan that may be paid back for all or part in shares, at the Company's own discretion.

R&D and innovation

On 30 May 2022, the Company announced that the Université de Lorraine ("UL") had released a report verifying that EQTEC's Advanced Gasification Technology successfully converts contaminated plastic waste into synthesis gas ("syngas") cleanly, stably and efficiently. The tests were a final step for the Company in formalising its collaboration with SEPS SAS ("SEPS"), a French company specialising in the management and recycling of industrial waste. The Company and SEPS will combine their technologies to pursue a pipeline of projects, starting with an on-premises, industrial facility in Haute-Garonne, France.

On 07 July 2022, the Company announced that it had signed a collaboration framework agreement with CompactGTL Limited ("CompactGTL"), another technology innovator that specialises in the production of synthetic fuels from gases, including syngas. The Company and CompactGTL agreed to collaborate on design, development, construction, and operation of waste-to-fuel projects and to share commercial opportunities, starting with a reference-demonstration project already identified by the parties.

On 31 October 2022, the Company announced the successful completion of steam-oxygen gasification tests that confirm the suitability of EQTEC's syngas technology for advanced biofuels production. The tests were performed following an upgrade by EQTEC to the Laboratoire d'Etudes et de Recherche sur le Matériau Bois ("LERMAB") facility at UL that houses EQTEC's R&D technology. The upgraded R&D capabilities are commercially significant for the Company, as steam-oxygen gasification enables hydrogen, renewable natural gas ("RNG") and other advanced biofuel applications.

Additionally, the Company announced on 30 June 2022 that it had selected global technology and engineering company Wood and its VESTA technology as the technology partner for design and deployment of a clean, waste-to-hydrogen solution at Southport Hybrid Energy Park, Merseyside.

Market Development Centres

MDCs are live, profitable plants that demonstrate EQTEC solutions, attract investment and incubate new demand. The Company is working on at least three MDCs: in Italy, Croatia and France.

On 22 December 2022, the Company confirmed mechanical and electrical completion at its Italy MDC in Castiglione d'Orcia, Italy, indicating closure of construction and start of commissioning of the plant, including enhancements to the original plant design that will further improve the profitability and resilience of its business model. In mid-January 2023, the Company and plant operations team ran the full gasification process on manual controls and is now setting it up for automatic mode. As part of its tests, the Company also produced biochar from the plant.

On 08 September 2022, the Group confirmed that it had received final approval from France's Ministère de l'économie, des finances et de l'industrie ("MINEFI") to acquire an existing, 6.5MWe waste-to-energy gasification plant in Villers-sous-Montrond, France. The Company intends to retrofit the failed technology with its own and position it as its France MDC. Once recommissioned, the Plant is expected to be France's largest ever combined heat and power ("CHP") gasification project, transforming c. 45,000 tonnes of mixed and contaminated wood waste and refuse-derived fuel ("RDF") for export of clean electricity to the national grid, with the option of increasing its production capacity in future. The Company is making good progress with a large infrastructure investor and owner-operator toward acquiring the project and recommissioning the facility with EQTEC solutions and engineering. The Company expects the France MDC to be operational in 2024.

On 29 September 2022, the Group confirmed that key components had been manufactured to support upgrade of the Croatia MDC in Belišće, Croatia to 1.5MWe from the original 1.2MWe. It further confirmed that discussions with investors and operators for the sale of the project were continuing productively. Those discussions continued through to the end of the year and the prospective investors have confirmed that they intend to visit the Italy MDC as part of finalising their interest in the project. The Company expects financial close, construction and commissioning of the Croatia MDC in 2023.

Deeside, UK project

On 01 April 2022, the Company announced its appointment of Black & Veatch ("B&V") to review its project at Deeside Industrial Estate, Deeside, Flintshire, with a particular focus on integration risks in light of the multiple technologies for the plant, provided by EQTEC and technology partner Anaergia, Inc. ("Anaergia"). The proposed plant, aimed primarily at supplying energy to Toyota Motor Company's ("Toyota") neighbouring Deeside engine plant, would house a 2MW anaerobic digestion facility built around Anaergia technology and a 9.9MWe syngas production facility built around EQTEC technology.

The Company further confirmed on 01 April 2022 that, based on successful completion of feasibility work for hydrogen production from syngas expected in future phases of development, EQTEC had received proposals from prospective partners for provision of syngas-to-hydrogen technology.

On 11 July 2022, the Company announced its appointment of B&V as front-end engineering and design ("FEED") partner with the added remit of preparing an engineering, procurement and construction ("EPC") cost estimate for power generation equipment and systems. FEED work has now completed, and the Company is working closely with Anaergia and other project partners to consider its options for proceeding at the site, including appointment of an EPC partner.

On 07 October 2022, Company executives joined Toyota's celebration of 30 years of operation of their engine production facility at Deeside. In addition to having the opportunity to participate in celebration of the facility's performance and contributions to the local communities, the Company heard reiterated Toyota's expectations for the Deeside waste-to-energy facility through the words of its President and CEO of Toyota Europe, Matt Harrison, who said to the Deeside Toyota team, "On top of your efforts for biodiversity and onsite renewable energy, you are contributing to a new circular economy through your collaboration with EQTEC....These efforts firmly place Deeside as the front runner to be our first global carbon neutral plant globally by 2025."

On 01 December 2022, the Company revealed that discussions with a prospective, corporate investor had not reached mutually acceptable commercial terms. This concluded a process and commitment by the investor to the Company and development partners Logik Developments Limited that had commenced in September 2022. The Company further confirmed that it is responding to additional interest in the Project from other, prospective investors.

As indicated in the Company's interim results published on 29 September 2022, the Deeside project would have been the single, largest contributor to the Company's 2022 revenues. Given that, stoppage of initial negotiations resulted in the greatest single impact on the Company's revenue pursuits for the year and resulted in the final update to its revenue guidance on 01 December 2022.

Other projects

UK

The Company announced on 24 June 2022 that Anaergia, also a technology partner at the Company's project at Southport Hybrid Energy Park in Southport, Merseyside, had agreed to be the EPC partner for construction of the facility housing its technology and to be the operations & maintenance ("O&M") partner for the resulting plant running its technology.

On 21 September 2022, the Company announced that it had agreed with Rotunda Group Limited ("Rotunda") a new agreement under which Rotunda would retain the Anaerobic Digestion (AD) Project and deploy Anaergia technology, releasing the Company from liabilities for acquisition of project scope deploying non-EQTEC technology, whilst securing all development services fees due to the Company for the development of the AD plant in the form of a secured Convertible Loan Note (CLN) with Shankley Biogas Limited. The Company also entered into an Option to Lease with Form of Lease agreed with Rotunda for the development of UK's first waste-to-hydrogen plant, deploying EQTEC technology. The Company is now working with Wood plc on the integrated technical solution whilst seeking investment for the development of the project.

The Company also confirmed on 15 February 2022 that it had a fully consented scheme for advanced thermal conversion at its Haverton Hill, Billingham, Teesside site and that it was exploring a range of additional solutions on the 17-acre site. The Company has since finalised its strategy for a multi-technology, waste-to-energy park with a complete review and renewal of the financial model and business case for the up to 25 MWe / 34 MWth RDF-to-electric power and thermal energy plant that would occupy just under half of the land at the site. Following its confirmation at its May AGM that it was developing financial models for a variety of scenarios at the site, the Company can confirm that additional uses considered for the site include a waste-to-hydrogen facility, a battery storage park, a battery disposal facility and a hydrogen refuelling station for lorries and buses in Teesside.

On 18 July 2022, the Company announced its selection of Petrofac Limited ("Petrofac") as FEED contractor and potential EPC partner. With multiple feedstock term sheets at attractive gate fees, established grid connection and highly favourable power purchase agreement, the Company is now pursuing investment into the site, with optionality around its configuration around the anchor plant with EQTEC technology. Once funded, the project is expected to move quickly into FEED work with Petrofac. Petrofac has confirmed it will support the Company's efforts with engagement of funding candidates toward that end.

On 20 December 2022, the Group announced that it had executed with Billingham site landowners Scott Bros. Enterprises Limited ("Scott Bros") an option for the grant of a lease in respect of the project land, releasing the Company from liabilities for acquisition of the project land and enabling it to focus on funding, detailed design and financial close of the project.

USA

The Company is, with development partner Phoenix Biomass Energy Inc. ("Phoenix") pursuing commissioning and start-up of the North Fork Community Power LLC ("NFCP") plant and business, and financial close of the Blue Mountain Energy Company LLC ("BMEC") project.

On 12 October 2022, the Company announced that, following many months of delay due to a combination of local forest fires, pandemic-related challenges in labour and supply chain and the ensuing need to re-finance the project to address delays, NFCP had entered into an agreement for financial restructuring with the project lenders towards full funding of the project up to the commercial operations date ("COD") of the North Fork, California plant. It further revealed that the third-party funding had been agreed through pre-negotiated, Chapter 11 bankruptcy arrangements. The restructure project finance has enabled work to restart at the site and the Company anticipates that NFCP will reach COD later in 2023. Three of the Company's executive directors will be on site there in February, toward development of the plan for both technical and business readiness of the plant.

Phoenix is also pursuing development of the BMEC project in Wilseyville, California. In its interim results on 29 September 2022, the Company revealed that development funding had been secured to support concept design work toward application for a large, federal loan to support construction of the plant and that additional term sheets had been received from both equity investors and lenders. The Company understands that the concept design work was completed, and the federal loan application submitted in January 2023 and that a response is expected by early April 2023. Subject to achievement of full funding by Phoenix, the Company is told to expect by May 2023 a contract for detailed design and technology sales.

Greece

The Company's joint venture Synergy Projects Limited ("Synergy Projects Greece") is pursuing a project in Livadia, Boeotia. The Company announced on 21 June 2022 that its partners ewerGy GmbH and ECO Hellas M IKE had confirmed a new debt facility with Optima Bank S.A ("Optima") to support construction of the plant, making it 80 per cent funded. The Optima facility is backed in part by the Recovery and Resilience Facility for Greece. Since that time, due diligence work has been completed by the appointed third parties and Synergy Project Greece is pushing for release of funding, while advancing with equity investors to provide the following 20% of funding. The Company expects to start detailed design work on the Livadia project later in 2023 with construction to start in the second half of the year and COD in early 2024.

[losses] 06/2/2023 07:36

It states with guidance.. so look at previous guidance for numbers

[m4rtinu] 06/2/2023 07:35

Re Italia MDC from RNS

" In mid-January 2023, the Company and plant operations team ran the full gasification process on manual controls and is now setting it up for automatic mode. As part of its tests, the Company also produced biochar from the plant."

[molatovkid] 06/2/2023 07:18

Starting to look like a bunch of busy fools in charge here. Plenty of activity but numbers going backwards.

[cmackay] 06/2/2023 07:13

Can anyone confirm what expected revenue for 22 actually was please?

[tenapen] 06/2/2023 07:11

No numbers - little hope.

Will the last one here please turn off the lights.

[davemac3] 06/2/2023 07:06

A trading update with no numbers?

[aja2] 03/2/2023 17:58

Another sell from the same large seller.

[adi27] 03/2/2023 16:53

35.5m buy or sell?

[paul8515] 03/2/2023 07:30

So where is the Italy news. Leaving time for Altair to reduce exposure before the bomb is dropped.

[juju44] 02/2/2023 12:04

Obviously things have not worked out with MDC . Time these clowns told us if they have a plan B

[juju44] 02/2/2023 09:34

10 million buy

[m4rtinu] 01/2/2023 10:33

With thanks to Simms on LSE for reminding us of this.



Altair is Origen is DP plus a couple others.

[juju44] 01/2/2023 08:50

Are we being raped by Altair with Palumba blessing

[juju44] 31/1/2023 20:07

All jam tomorrow . We need a plant delivered , something that generates belief in the product and in the company which appears so mismanaged

[stevea171] 31/1/2023 19:51

From aandi LSE fwiw. No corresponding release to shareholders and no guide on how anything at all is to be financed so I won't be wading through any of the detail ....

### From RollonRetirement's original posting: ###

JVL gave a presentation to the Solid Waste Management Working Group of the Connecticut General Assembly on 15th December 2022. Here's the link to the slide deck

hxxps://www.cga.ct.gov/et/tfs/20220801_Solid%20Waste%20Management%20Working%20Group/20221215_
Subgroup%20Meeting/Introduction%20to%20EQTEC%20(Dec%202022)%20CT.pdf

It's marked as 'EQTEC Confidential' but it's in the public domain and EQTEC are fine with it being circulated. There is also an hour long YouTube video of JVL presenting this to the working group via Zoom with Q&A,



Both are well worth a look."

Some points I noted from the slide deck,

New 'Industrial' flagship project - Data Centre 1 (Ireland)
New 'Utility' flagship project - Lucy (France)
'Future Target' - Karlovo, Plovdiv, Bulgaria (currently decommissioned)
Deeside - potential for production of 700,000kg per year of hydrogen
Southport - 250,000kg hydrogen exported to the grid (Potential for nearby expansion to 3 – 4 times of hydrogen production)
Slide 16 has a map showing projects in the California pipeline, (many not previously mentioned)
Plumas 3MW
Upper Valley 3MW
Camptonville 5MW
Blue Mountain 3MW
Napa 3MW
Marin 2MW
Mount Diablo 2MW
Tracy 3MW
Intermountain 3MW
Tuolumne 3MW
Mariposa 3MW
Monterey 3MW
North Fork 2MW
Merced G+E 1MW
Madera Country 3MW
Cabin Creek 2MW
Bakersfield
Limoneira 2MW + 2MW facilities

University of Lorraine - commercial testing pipeline for 2023 is full

EQTEC in the US, Legal entity. The company is preparing for its formal registration in the US—either through a wholly-owned subsidiary or through a joint venture. USA partners and pipeline. The company has established project development, delivery and business development partners in California, Texas and Washington DC and works with other partners based in Arizona, Colorado and Missouri. US procurement. With its Texas-based partner, the company has completed a supplier assessment for a majority of its components for California plants, toward procurement of those parts in the US.

...and a few points from JVL's YouTube presentation,
"....we now have partners for methanol as well" (00:06:08)
"....we are talking to a big owner operator in the US right now...they are interested in the hydrogen" (00:30:12)
"....let me start with hydrogen....There are industrial buyers of it. We are close to a very large, actually US, fertiliser company in one of our plant facilities in the UK. It's a very large facility, it uses 1% of the UK's entire natural gas consumption every year. They have already agreed to buy the hydrogen from us."

[juju44] 30/1/2023 14:55

Should you not have Amen at the end . I think we need prayer

[m4rtinu] 30/1/2023 14:38

Time for a song. To the tune of O sole mio (or if you are old enough, the cornetto advert).

Just one MDC
Give it to me
Delicious gasification
From EQT
And with some help from COSMI
Just finish the project
In Italy

[juju44] 29/1/2023 17:50

Only hope here is that the tech works and someone with a fat wallet sees enough value to get in . Its derisory

[stevea171] 29/1/2023 17:38

4 working weeks past 'it's looking a lot like Xmas' and still nothing these serial over promise and under deliver merchants can say about the commercial operation of the Italia MDC.

Even if they pull something out of the fire tomorrow, credibility has been lost with all companies they deal with. Yet another financial failure (how much has the Italia budget blown out by and who is funding this?), PR disaster and project that has put the company even more under the cosh which it very much didn't need .....

[adi27] 25/1/2023 13:12

Isn't there also a component for drying the biomas. Maybe this struggles if too wet.

[adi27] 25/1/2023 13:10

I thought the same, then wondered if the storage areas are due to have permanent roofs installed, but yet to be fitted.

[m4rtinu] 25/1/2023 12:30

Had another watch of Yoel's video. (Not not yours, Skinny :) What struck me was the contrast between the components and the "shed" that everything is housed in. Including a bit of canvas partially covering feedstock, which needs to be dry. If the delay is due to rain and wet biomass, it is disappointing. Albeit they might have hoped Italy would be drier than, eg UK.