Bank loan term sheet and Livadia project update

21 June 2022

EQTEC plc

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

Bank loan term sheet and eligibility for National Recovery and Resilience Plan   

for Livadia, Greece project

EQTEC plc (AIM: EQT), a world-leading technology innovation company enabling the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and other energy production, is pleased to announce receipt and acceptance of non-binding Heads of Terms ("HoTs") with Optima Bank S.A. ("Optima") for a debt facility (the "Facility") to support construction of a 1MWe waste-to-energy project at Livadia, in Boeotia, Greece (the "Project").

Heads of terms

The Facility proposed in the HoTs would provide senior debt up to 75% LTV of the total capital required for the Project.

The HoTs were agreed between Optima and EQTEC Synergy Projects Limited ("Synergy Projects"), the Company's joint venture ("JV") with ewerGy GmbH ("ewerGy") and ECO Hellas M IKE ("ECO Hellas"), subject to Optima final credit approval. The balance of capital on the Project is currently held as equity by Synergy Projects, but the JV partners are in discussions with institutional funds focused on energy transition infrastructure, for the sale of project equity on Livadia and other projects in the broader portfolio they are jointly pursuing under the JV.

The Project, originally announced by the Company in September 2021, will result in construction of a waste-to-energy gasification plant in Livadia, Boeotia, Greece (the "Plant") that, once operational, is expected to produce a minimum of 1MW green electricity from c. 7,500 tonnes of mixed agricultural waste from local farms.

Toward full contract of the loan, Optima has selected TÜV HELLAS, a subsidiary of TÜV NORD ("TÜV"), to certify the Project and act as independent engineer.  In its role, TÜV will assess the viability of the Project based on the site and plan, the development strategy, the technology and delivery risks. The work required for the execution of the loan is expected to be completed at the end of Q3 2022.

Additional funding support

Synergy Projects has appointed Grant Thornton Greece ("Grant Thornton") to help the Company and its partners with the implementation of the proposed investment plan of the Project to be financed through the Recovery and Resilience Facility ("RRF") for Greece.  Grant Thornton will carry out the analysis of the investment strategy and the consistency with the objectives set by the Recovery and Resilience Mechanism, the analysis of key eligibility parameters of the RRF, support development of business plans, prepare requisite documentation, submit the investment file and monitor the application process.

The RRF is part of a National Recovery and Resilience Plan, launched in Greece and other parts of Europe to mitigate the economic and social impacts of the coronavirus pandemic and make the economy and society more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.  Greece is aiming the RRF in part at increasing the share of renewables in the energy mix while reducing its traditional reliance on solid fossil fuels. 

Synergy Projects anticipates that all projects currently in its pipeline for Greece will qualify for funding under the RRF, making available low-cost subsidised debt for the projects. Optima has indicated interest in financing further projects developed by the JV under the RRF.

David Palumbo, CEO of EQTEC, commented:

"We are pleased and impressed with the persistent dedication of the Greek private and public sectors in supporting technology innovation for Net Zero energy solutions. Particularly as economies and societies struggle in the aftermath of the Covid pandemic, we are encouraged by this sort of support in favour of innovation that will transition communities away from fossil fuels by providing local, baseload energy from local waste.  We see this business model gaining traction in so many of our target markets and look forward to accelerating its implementation across Greece and beyond."

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.

ENQUIRIES

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.