The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
6 July 2017
EQTEC PLC
("EQTEC", "Company" or the "Group")
Update on Newry Biomass Project
EQTEC PLC (AIM: EQT), the energy infrastructure developer focused on the production of clean energy in the UK and Ireland, provides the following update on its Newry Biomass project, which is owned by its 50.01% subsidiary Newry Biomass Limited ("NBL").
Further to the Interim Results announced on 27 March 2017, the Company continues to work towards exporting electricity to the grid by the revised deadline of 31 March 2018 ("deadline") agreed with Ofgem. EQTEC remains in regular dialogue with the local authority to confirm its application for a planning amendment following the decision made to repower the project using EBIOSS Energy SE's ("EBIOSS") gasification technology.
EQTEC continues to provide the local authority with information in relation to the planning amendment and the Company hopes to successfully conclude this process in the near term, so that it is able to can commence the necessary Civil, Electrical and Mechanical works in order to meet the deadline of 31 March 2018.
However, should there be a continued delay in receiving the amended planning permission, it is likely that the Company will not be able to meet the 31 March 2018 deadline for the repowering of the project. As a result, the Company has started to consider contingency plans for the project.
The contingency plans take into account the Company's revised business strategy, as set out in the Interim Results, to focus on taking advantage of the significant opportunities in the Energy from Waste sector using, among other things, Refuse Derived Fuel ("RDF"). The contingency plans being considered include the possibility of converting the plant from using wood biomass to RDF. The Company would, in this event, seek to monetise the value of equipment already on site through the sale of this equipment to other projects the Company is seeking to develop together with its major shareholder EBIOSS.
Gerry Madden, Chief Executive Officer of EQTEC commented: "The local authority is being constructive in their comments and we remain in regular dialogue with them. However, we are disappointed at the length of time it is taking to assess our application for a planning amendment which was based on a previously approved permission. Nevertheless, we have a credible alternative that should generate future revenues for the Company. We look forward to providing further updates in due course."
EQTEC PLC |
+353 (0)21 2409 056 |
Gerry Madden / Brendan Halpin |
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Strand Hanson Limited - Nomad |
+44 (0)20 7409 3494 |
James Harris / Richard Tulloch / Ritchie Balmer |
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VSA Capital Limited - Joint Broker |
+44 (0)20 3005 5000 |
Andrew Monk / Andrew Raca |
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SVS Securities Plc - Joint Broker |
+44 (0) 20 3700 0093 |
Tom Curran / Ben Tadd |
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Luther Pendragon |
+44 (0) 20 7618 9100 |
Harry Chathli / Ana Ribeiro / Alexis Gore |
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