The EQTEC PLC (LON: EQT) share price rallied 21.9% after releasing an update about its Italia Market Development Centre (MDC) located in Gallina, Tuscany, Italy. The company noted that the recommissioning of the project was on track, and it was expected to start commercial operations in December 2022.
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Investors cheered the news, given that this would be the first operational MDC after the company changed its business strategy to focus on creating MDCs. The Market Development Centres (MDCs) showcase the real-life applications of its waste-to-energy solutions and how to operate such centres profitably.
Eqtec has acquired several sites that had previously installed its technology before ceasing operations and is keen to reopen them as MDCs. However, the company noted that most of its customers ended up closing their waste-to-energy plants because they did not understand how to operate them effectively.
All the MDCs acquired by Eqtec previously operated using its technology before closing. Therefore, the Italia MDC will be the first operational site that showcases Eqtec’s technology and how to run such sites profitably.
Eqtec revealed that the investors backing the project under the Special Purpose Vehicle (SPV) had agreed to invest more money into the project to enhance the Plant. The enhancements will allow the Plant to produce biochar, whose demand in Europe is growing; hence, it represents an additional revenue stream.
The waste gasification company also revealed that its investors had agreed to add an extra feeding-in system allowing the Plant to accommodate both high-density and low-density feedstocks. The firm will also add a dryer and a thermal oxidiser to make the Plant more self-sufficient, giving the firm more control over the entire conversion process.
Eqtec noted that despite encountering multiple delays, the firm expects to receive the last critical ancillary equipment this week, after which it expects to complete the mechanical and electrical parts of the Plant by the end of the month.
Eqtec shares have fallen 68.4% this year and seem to have formed a bottoming pattern since early October making them quite attractive from a long-term perspective.
*This is not investment advice.
Eqtec share price.
The Eqtec share price rallied 21.88% to trade at 0.39p, rising from Monday’s closing price of 0.32p.