29 September 2025

EQTEC plc

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

Interim Results for the six months ended 30 June 2025

EQTEC plc (AIM: EQT), a leading licensor and innovator of proprietary syngas technology for clean conversion of the world's waste into sustainable energy and biofuels, announces a trading update and its unaudited, interim results for the six months ended 30 June 2025 ("H1 2025").

Financial highlights

·     Revenue: €0.6 million (H1 2024: €1.4 million).

·     Gross profit €0.5 million (H1 2024: €0.8 million)

·     Gross margin improvement to 82% (FY 2024: 53%) underpinned by a shift toward high-margin IP-rich services and a departure from high-risk development activities.

·     EBITDA loss: €1.1 million (H1 2024: €1.6 million)

·     Capital raise of £1.5 million (€1.7 million) through the placing of new shares at a premium to Compact WTL Tech Limited ("CWTL"), a strategic investor.

·     Post-period annualised payroll costs in the Spanish subsidiary will be reduced by c.60% as a result of the rationalisation of its operations.

·     Post-period, £0.25 million (€0.3 million) equity investment raised in August 2025 through the placing of new shares to CWTL at a premium.

·     The net loss, including a provision for further impairment of assets of €0.32m, was €2.07 million (H1 2024: €3.2 million), which included €0.6 million of debt servicing and other financing costs (H1 2024: €1.5 million).

Commercial and Operational Highlights, including post-period end

·     Completed cold and hot commissioning at the AgriGas plant in Larissa in August, with final enhancements on pellet line completed in September. Secured revenues, signed a maintenance support contract, and hosted investor visits.

·      Advanced €320,000 in shareholder loans to Italia MDC but ceased unilateral support, leading to suspended repayments and remedial works. Agreed with Quainstone on a controlling investment and debt restructuring, while further impairing EQTEC's equity by the same amount in order to maintain the 31 December 2024 previously impaired carrying value at €2m.

·      Pursuing redevelopment of the Grand Combe site with the landlord and GRDF after notification from Idex, indicating their intention to not proceed with the project.

·      Secured additional funding from GRDF for pre-FEED work, including the 5 tonne/day Green Gas Provence plant, in France.

·      Expecting to receive acceptance of a new proposal for a waste-to-liquid project in France, targeting revenues of c. €300,000 in 2025.

·      Advanced collaboration with Simonpietri in Hawaii with the FEL-3 proposal for the Aloha Carbon RNG project expected to commence in Q1 2026.

·      North Fork Community Power, LLC ("NFCP") exited Chapter 11 with EQTEC retaining only nominal equity, already fully impaired. Targeted COD by year-end, though timing remains outside EQTEC's control, while the Company continues to contest a legacy claim deemed without merit as previously announced in 23 March 2023.

·      Blue Mountain Electric Company, LLC ("BMEC")Secured United States Department of Agriculture ("USDA") as a financial sponsor and, in principle, USD 39 million in debt financing, with a community offering underway for the final USD 1.2 million equity. Required to close financing in 2025 to preserve BioMAT eligibility for EQTEC to proceed with technology supply.

·      Belišće project to be reframed by SENSE ESCO after DS Smith closed its local Paper Mill business but approved €15 million investment to expand packaging operations, losing feedstock supply but maintaining offtake potential. Requirement to secure alternative feedstock to progress toward funding and COD.

·      Validated the syngas-to-liquids pathway with CompactGTL's pilot plant, which produced high-quality synthetic crude. Working on relocating the plant to LERMAB for extended trials and advanced UAE investor discussions to position the partnership for modular SAF projects.

·      At the Company' annual general meeting held on 25 September 2025 shareholders approved resolutions to effect a reduction in the nominal value of ordinary shares from €0.01 for each ordinary share in the capital of the Company to €0.0001 for each ordinary share in the capital of the Company.

Ian Pearson, Chairman of EQTEC, commented:

"EQTEC continues to face near-term volatility as customer and partner circumstances evolve, but the long-term opportunity remains compelling. International policy momentum towards Sustainable Aviation Fuel and advanced biofuels aligns strongly with our technology and commercial strategy. With gross margins improving, a leaner operating model, and validation of our synthetic fuels pathway, we remain confident that EQTEC can attract the right partners and investors to deliver on its potential."

David Palumbo, CEO of EQTEC, commented:

"While external headwinds have constrained revenue growth in H1 2025, we have maintained strong gross margins and continued to advance strategically important projects in Europe and the USA. Our ability to validate synthetic fuels production and attract interest from new strategic investors demonstrates the long-term potential of our model. We remain focused on cash preservation and disciplined execution, while positioning EQTEC for future growth as mandates and investor appetite for advanced fuels accelerate."

Outlook

The first half of 2025 has been marked by setbacks outside EQTEC's direct control, with delays, withdrawals and restructuring among customers and partners slowing the pace of delivery across several projects. These outcomes reflect the inherent complexity of developing projects in evolving regulatory environments and with partners and customers whose priorities may shift. As a result, our going concern assessment reflects the reality that we continue to face as we seek to manage material risks related to funding and cash flow. To support working capital, in June 2025 the Company signed an Option Agreement granting EQTEC the right to require up to £1.5 million in further equity subscription from CWTL over 12 months. In August 2025 the Company secured £250,000 in proceeds by partial exercise of this option. Against this backdrop, EQTEC has continued to demonstrate resilience and ingenuity, leveraging the versatility of its technology to reconfigure business cases and sustain viable projects.

In Greece, Italy and France, the Company has adapted to changing counterparties and financing conditions, ensuring that strategically important projects such as the Italia MDC plant and the Green Gas Provence initiative continue to advance. In the USA, BMEC has achieved significant progress toward financial close, NFCP is targeting COD by year end, and our collaboration with Simonpietri in Hawaii is moving toward FEL-3 in early 2026. In parallel, our synthetic fuels platform with CompactGTL achieved an important milestone with successful production of synthetic crude and is now preparing for extended trials in France, alongside active discussions with UAE investors.

The broader market context reinforces the importance of this strategy. International Air Transport Association ("IATA") forecasts more than 300 SAF projects globally by 2030, with production expected to double in 2025 but still covering only a fraction of mandated demand. S&P Global highlights the widening feedstock gap in Europe and the USA, with ambitious biofuel targets increasingly constrained by limited supply. These dynamics point to an urgent need for modular, scalable technologies capable of converting diverse waste streams into advanced fuels, an area where EQTEC is well positioned.

Looking ahead, EQTEC aspires to play a leading role in closing the feedstock gap and enabling compliance with SAF mandates. By combining proven gasification technology with strong partnerships and replicable project designs, the Company aims to rebuild its investor base and attract strategic partners to accelerate the delivery of sustainable fuels at commercial scale.

ENQUIRIES 

Current trading

Greece:

In the first half of 2025, EQTEC's technical team worked closely with AgriGas on upgrades and enhancements, including improvements to the pelletisation line to increase output and modifications to reduce operating costs. Cold and hot commissioning of the gasification plant was successfully completed in August, and the upgrade works on the pelletisation line completed in September, with AgriGas expecting to bring the plant to full operations in Q4 2025. EQTEC has also entered into a Maintenance Support Contract with AgriGas, ensuring ongoing technical support.

EQTEC also hosted several site visits for prospective investors and due diligence advisors. Feedback has been strong, particularly regarding the quality of process design, automation and control systems. Beyond its immediate performance, AgriGas stands as a replicable model for future agricultural waste projects, demonstrating how EQTEC can deliver, enhance and maintain plants that achieve both operational reliability and investor confidence.

Italy

Between January and June 2025, EQTEC advanced c. €320,000 in shareholder loans to EQTEC Italia MDC Srl ("Italia MDC") to cover working capital requirements. However, this injection was insufficient to meet both ongoing operational expenses and the completion of remedial works required to bring the Gallina plant online. On 25 July, 2025 EQTEC formally notified its fellow shareholders in Italia MDC that, due to changes in its financial circumstances, it could no longer provide financial support to Italia MDC on a unilateral basis. As a result, the company suspended loan repayments to its secured bank lender.

EQTEC subsequently reached agreement with Quainstone Limited ("Quainstone"), the second-largest shareholder in Italia MDC, to provide the additional capital required. In September, Quainstone made a capital injection that allowed Italia MDC to bring its bank payments up to date. In parallel, Italia MDC is finalising a restructuring agreement with the bank that includes a payment moratorium until 30 June 2026. Quainstone's investment to finance the plant's recommissioning will position it as the majority shareholder with c. 67% of share capital, senior creditor status among shareholders, and the lead role in completing the Gallina plant.

As a result, EQTEC's equity interest will be reduced from c. 49% to c. 27%, with its shareholder loans subordinated to those of Quainstone. Anticipating this outcome, EQTEC has impaired the carrying value of its equity in Italia MDC by a further €320,000, maintaining the previously impaired carrying value of €2 million as at 31 December 2024.

Despite these developments, EQTEC continues to view the Gallina plant as strategically valuable, serving as a European reference site to demonstrate its technology to policymakers, investors and prospective partners. Management acknowledges that, although EQTEC's equity stake may be reduced, the strategic importance of Italia MDC remains high. In the near term, the Board is prioritising cash preservation to support group working capital and core commercial activities, while backing Quainstone's leadership in bringing the Gallina plant to completion. The change of control and operational management at Italia MDC reinforces three key principles drawn from our experience where EQTEC has had to intervene in plant operations: we must remain technology licensors, not plant operators; our partners must be well-capitalised and operationally capable; and reference plants succeed only when supported by robust and well-resourced operational frameworks.

France:

In the first half of 2025, EQTEC's French pipeline has seen both setbacks and new opportunities. Idex, our long-standing partner, has notified on 26 September 2025 that they will not proceed with the Grand Combe project. This decision reflects both the absence of a confirmed heat offtake arrangement and a recent  internal freeze by Idex's board on projects outside its core business. While this is disappointing, EQTEC has engaged directly with the landlord of the site, who is also the region's largest employer and the waste owner supplying feedstock. Early-stage discussions are underway to explore redevelopment of the site, as a waste-to-fuel project, without Idex. These discussions are ongoing, whilst Idex completes the planned dismantling of the old plant on site. GRDF has also been supportive and have indicated preliminary comfort that a gas pipeline could be connected, which strengthens the potential viability of the revised project structure.

At the same time, GRDF has awarded EQTEC funding of €175,000 to advance two new pre-FEED projects: the first for the 5 tonnes/day Green Gas Provence project in Istres, which will replace the previously targeted Gardanne site, and the second for a 4 tonnes/day facility elsewhere in France. Both projects are designed to demonstrate EQTEC's technology at a commercial scale and to attract strategic investors and co-development partners. In addition, we received preliminary approval for Pre-FEED on one new waste-to-liquid projects in France, owned by an established and well-capitalised developer in France. EQTEC is finalising an updated proposal, which if accepted in Q3 2025, could generate c. €300,000 in revenues by the end of the current year. These developments underline our continued focus on France as a priority market for both waste-to-gas and waste-to-fuels applications.

Recent commercial developments in France highlight a clear shift in European demand towards owner-operators and developers committed to projects that directly support the EU ReFuelEU objectives for aviation and maritime. This emerging momentum spans the production of RFNBOs from recycled CO₂ and syngas off-gases, biofuels from biomass, and recycled carbon fuels from RDF and other waste streams.  Building on this positive trajectory, EQTEC is reinforcing its position not only through its collaboration with CGTL, but also by engaging in strategic R&D partnerships with leading research institutions, major corporates, and recognized deep-tech companies. These planned partnerships, are designed to accelerate technological innovation and strengthen EQTEC's role at the forefront of Europe's energy transition.

United States:

Collaboration with Simonpietri Enterprises LLC

In September 2024, EQTEC signed a Collaboration Framework Agreement (CFA) with Simonpietri Enterprises LLC (SEL), a Hawaii-based project developer focused on sustainable solutions for waste reuse and decarbonisation in agriculture, energy, and transportation. The Company has made strong progress in Hawaii and Simonpeitri advise that the FEL-3 proposal on the Aloha Carbon Honolulu RNG Kapolei in Hawaii (representing, once funded by approved government grant, c. €1.0 million revenue to EQTEC) will likely commence in Q1 2026. The Company remains committed to supporting Simonpeitri develop a portfolio of modular, localised waste to RNG and combined heat and power projects.

North Fork Community Power Project

North Fork Community Power, LLC has formally exited from its previously announced Chapter 11 bankruptcy process. EQTEC, along with other members, has retained nominal equity in NFCP; however, given the position of secured bondholders, the Company has already fully impaired this investment. The plant itself is in the final stages of readiness for commissioning. The Managing Member, North Fork Community Development Council (NFCDC), has notified EQTEC that they expect to host our commissioning team at the site during October and November, with COD anticipated by year end. EQTEC notes that it has no control over the timing or delivery of this programme.

In parallel, EQTEC remains a joint defendant in a legacy claim brought by SCV North Fork LLC, the project's original tax credit investor, as originally announced on 21 March 2023. SCV was removed as a member of the operating company after failing to meet its payment obligations under the agreed tax credit schedule, a decision that was subsequently upheld by the bankruptcy court. The court also denied most of SCV's claims and granted protection against any derivative claims being pursued against the managing members. One legacy claim remains, naming six defendants including EQTEC plc, Phoenix Energy Biomass, North Fork Community Development Council, David Palumbo, Greg Stangl and Dan Rosenberg. Based on legal advice, EQTEC considers this claim entirely without merit and vexatious.

Blue Mountain Electric Company (BMEC) Project

The Blue Mountain Electric Company project has made tangible progress in 2025, although the timeline remains constrained by regulatory deadlines. A major milestone was achieved with confirmation that the United States Department of Agriculture (USDA) will join as a financial sponsor, alongside other state and federal agencies. This positions BMEC to qualify for a USDA loan guarantee, a critical step toward securing long-term financing. In parallel, the project sponsors have secured, in principle, the full debt package of approximately USD 39 million and are in the midst of a community offering to raise the final USD 1.2 million of equity required to reach financial close.

Despite this momentum, time remains a decisive factor. Unless the project closes and moves into construction within the year, it risks being affected by the scheduled closure of California's BioMAT programme under the Public Utilities Commission. BMEC and its partners are working intensively to meet this deadline and safeguard the project's eligibility.

EQTEC holds a signed contract to supply its advanced gasification technology to BMEC and has already completed preliminary engineering works. The Company awaits notice to proceed following financial close and continues to support Phoenix Energy and the wider project team in bringing this flagship U.S. initiative to realisation.

Croatia

In Croatia, SENSE ESCO has been developing the Belišće project in collaboration with the local subsidiary of DS Smith, a UK-based multinational specialising in sustainable packaging, paper products and recycling services. DS Smith had originally committed to provide plastic-rich waste feedstock while also acting as purchaser of the plant's energy output. The Company was recently notified of DS Smith's proposal to close its Paper Mill in Belišće, citing structural challenges in the European market, including overcapacity, sustained pressure on sales prices and margins, and infrastructure limitations that had rendered the mill unsustainable. At the same time, DS Smith approved a €15 million investment to expand and modernise its Packaging operations in Belišće, reinforcing its long-term presence and strengthening its role as a key industrial anchor for the project.

The closure of the Paper Mill alters the project's configuration. While DS Smith's Packaging operations are expected to remain onsite and capable of absorbing the full energy output, they will no longer supply waste plastic feedstock. Consequently, further commercial development is now required to secure long-term feedstock contracts with alternative counterparties. The continued presence and expansion of DS Smith Packaging provides a strong and credible offtake customer, maintaining the industrial fundamentals that underpin the project.

EQTEC had already fully impaired its investment in the Croatian joint venture projects, reflecting the uncertainty of funding timelines. Even so, the fundamentals of the reconfigured Belišće project remain compelling. Together with SENSE ESCO, the Company is committed to advancing the project toward funding and COD, with the aim of delivering a flagship example of circular, decarbonising energy infrastructure for hard-to-abate industrial sectors.

Collaboration with CompactGTL and development of the synthetic fuels business

In April 2025 the Company announced a subscription of £1.5 million by CompactGTL Limited via its wholly owned subsidiary CWTL.

In April 2025 the Group acquired a 10% interest in a mobile Containerised Syngas to Liquid Fuels Pilot Plant, which includes a syngas upgrading unit and a single-channel Fischer-Tropsch reactor, from Compact GTL Limited, at a cost of £250,000.

In June 2025 the Company signed an Option Agreement granting EQTEC the right to require up to £1.5 million in further equity subscription from CWTL over 12 months. In August 2025 the Company secured £250,000 in proceeds by partial exercise of this option.

In August, CompactGTL's containerised syngas-to-liquid fuels pilot plant, in which EQTEC holds a 10% interest, successfully produced its first synthetic crude from syngas. The product was a high-quality light syncrude, in line with expectations and a positive validation of the combined technology pathway.

EQTEC is now working with CompactGTL to transport the pilot plant to the LERMAB facility in France. Once installed, the plant will be operated for an extended period, using syngas produced from EQTEC technology and tested across a variety of feedstocks. These trials will provide critical data to further validate the integrated process at scale and in real-world conditions, building the technical and commercial foundation for future projects.

In parallel, EQTEC and CompactGTL are progressing preliminary discussions with investors in the UAE, where there is strong strategic focus on synthetic fuels and, in particular, Sustainable Aviation Fuels (SAF). The objective of these discussions is to secure financing for a fully integrated demonstration plant that would combine EQTEC's advanced syngas generation with CompactGTL's gas-to-liquids platform. In addition, work is progressing toward a full Front-End Engineering and Design package for a larger reference plant, which could serve as a blueprint for distributed, modular SAF infrastructure.

The synthetic fuels platform is at an early but important stage of development. With mandates for SAF continuing to rise and supply capacity constrained, the partnership with CompactGTL positions EQTEC at the forefront of a small group of companies technically ready to deliver modular, waste-to-fuel projects. Our focus remains on demonstrating technical integration at pilot scale, validating performance across multiple feedstocks, and advancing discussions with capital providers for the next stage of commercialisation.

The principal, unaudited, condensed and consolidated financial statements for the six months ended 30 June 2025 are set out below:

EQTEC plc

Unaudited condensed consolidated statement of profit or loss

for the six months ended 30 June 2025