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EQTEC Shares Rise After Acquiring Waste-to-Energy Plant in Croatia Through JV

Sam Boughedda trader
Updated 11 Aug 2021

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Eqtec facility

EQTEC's (LON: EQT) share price is climbing on Wednesday after announcing it has completed the acquisition of a 1.2 MWe waste-to-energy gasification plant in Belišće, Croatia.


The acquisition was completed through Synergy Projects, a joint venture between the company and its Croatian project development partner, Sense ESCO.

The plant, which was commissioned in 2016, was built around EQTEC's proprietary and patented advanced gasification technology. It will be recommissioned and repowered to convert forestry wood waste from local farms and forests into green electricity and heat for use in the local community.

EQTEC expects to become the Plant's O&M contractor and will make it the second of its market development centres.

The plant is expected to produce approximately 1.2 MW green electricity from around 8,000 tonnes per year of locally-sourced wood chips and forestry waste biomass from regional forests;

EQTEC estimates that it will generate an “unlevered IRR of 12% and annual EBITDA in excess of €850,000.”

Meanwhile, the contract value of EQTEC's technology sales for the plant is expected to be €1,700,000 in technology and engineering upgrades.

The joint venture is currently 100% owned by EQTEC, with 20% equity to be transferred to Sense ESCO after completion and an additional 20% subject to performance milestones.

“EQTEC's joint venture with such a capable and dependable partner as Sense ESCO provides the perfect platform for our re-entry into Croatia, re-introducing our Advanced Gasification Technology to sustainably transform biomass waste into energy for local communities,” said David Palumbo, CEO of EQTEC.

“The plant in Belišće, which will also be a Market Development Centre, is the next of several EU waste-to-value facilities we are developing to integrate our leading-edge technology and overseeing through commissioning into live operations,” Palumbo added.

EQTEC's share price is up 5.38% at 1.37p so far on Wednesday, after initially rising to 1.49p earlier in the session.

Should you invest in EQTEC shares?

EQTEC shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket 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 shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.