Shares of EQTEC PLC (LON: EQT), a leading gasification technology company, surged 7.69% after signing a conditional Land Purchase Agreement (LPA) for the land on which its propose 25Mwe Billingham waste gasification and power plant will be built.
The company is set to pay £8.6 million for the land located at Haverton Hill in Billingham. It has paid an immediate deposit of £260,000, from which the £100,000 exclusivity payment shall be deducted.
The balance of £8.34 million should be paid when the deal is completed within a 12-month window. Today’s announcement is a major step for EQTEC, given that it is now much closer to acquiring the land on which it will build its waste gasification plant.
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EQTEC shares bounced off the support zone highlighted in a previous article as the news provided a positive trigger for the company. Still, the project is yet to secure funding, which could derail is timeline if the ongoing talks with a potential financier fail.
The firm is currently in talks with a European owner-operator of waste-to-energy projects to finance and operate the project after improved designs for the project were approved by the Stockton-on-Tees Borough Council in late January.
The company has also secured an offer for the project to be connected to the power grid once construction is complete and has acquired crucial permits to construct and operate the project.
EQTEC’s CEO, David Palumbo, said: “The acquisition of the Project Site means we remain on track to deliver the UK’s first sustainable waste-to-energy plant using EQTEC’s leading advanced gasification technology and solutions.”
Adding:
“Billingham is estimated to convert 200,000 tonnes of non-recyclable household and commercial waste each year into 25MW of green electricity and 34MW of heat production.”
Eqtec share price.
Eqtec shares surged 7.69% higher to trade at 2.10p, rallying from Thursday’s closing price of 1.95p.
Should you invest in EQTEC PLC shares? EQTEC PLC shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are EQTEC PLC shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies