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.
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