What the company does
So, the business model is simple: source waste-to-energy projects and sell the developers an EGT along with an operation and maintenance contract.
The company has been targeting power generation systems fed by municipal waste, waste olive oil and biomass. The aim ultimately is to become a ‘one-stop-shop’ for the technology, design, the build and the operation and management of these projects.
In the municipal waste and refuse business EQTEQ is partnered with two industrial specialists, China Energy and Cobra Instalaciones Y Servicios. A contract won in conjunction with Cobra to build a 25-megawatt power plant in Billingham, County Durham, which is designed to process some 200,000 metric tonnes of refuse-derived fuel per year in a project expected to be worth between £150mln and £180mln. Discussions with funding partners continues.
Another end-market is to provide the technology to assist industries to eliminate waste streams.
EQTEC has more than 90,000 hours of data after deploying its technology in Spain for several years, recovering energy from olive pomace waste, and talks have been held to collaborate with partners on potential projects in the country and elsewhere.
The company’s gasification technology was selected by Phoenix Energy for two biomass power plants in California. Designs for the first plant have already been completed, and it is presently in talks with Phoenix over a potential deeper collaboration.
It signed a €2.2mln contract to provide equipment, engineering and design services to North Fork Community Project (NFCP), a biomass gasification scheme in California capable of generating revenues of around US$4mln a year, in exchange for a 19.99% stake.
In November 2019, EQTEC agreed a deal in principle with bond investors to help tie up the investment needed to kick off the project after forest fires disrupted the financial process.
Meanwhile, the group has also inked a €5.5mln (£4.7mln) commercial agreement to develop a 1.18 megawatt (MW) biogas power plant in the area of Gratens in France.
How it is doing
In the six months ended June 30, the AIM-listed firm almost tripled sales, with revenues rising to €1.56mln from €550,000 in 2018, ending the period with net current assets totalling €530,000 compared to net current liabilities of €2.65mln at the end of 2018.
In October, it completed its first maintenance contract with Transports Metropolitans de Barcelona (TMB), the public transport operator in Barcelona, Spain, to overhaul of the engine cogeneration unit at TMB’s Horta Station in Barcelona.
Following completion of these works, EQTEC will retain the preventive maintenance contract until May 2020 for both TMB’s Horta Station and a second project, at TMB’s Triangle Station.
In December it bagged £958,500 from a subscription of shares to new and existing investors, mainly among five “strategic” shareholders, to develop the group’s near-term projects and for working capital purposes.