Shares of EQTEC PLC (LON: EQT) today surged 11.2% after the company confirmed that it had signed a call option and exclusivity agreement to buy land for the Billingham waste gasification and power plant project.
Investors were pleased to see the agreement finally signed after being postponed three times in the past as EQTEC and its development partner Scott Bros Enterprises did their due diligence.
EQTEC has agreed to purchase the project site at £8.6 million less the £260,000 paid to secure the call option and the firm may exercise the option at any time up to the February 28, 2021 deadline.
The company is in talks with potential engineering, procurement and construction (EPC) firms and is also working on the documentation required for tendering the EPC contract for phase one of the project, and will announce the final structure of the funding once the above is complete.
David Palumbo, EQTEC’s CEO, said: “We estimate that, with the application of EQTEC's advanced gasification technology, the project would convert 200,000 tonnes per year of non-recyclable everyday household and commercial waste otherwise destined for landfill or incineration,”
Adding:
“In this way, EQTEC expects to be able to significantly improve both the economics and the environmental impact of this plant and many traditional waste-to-energy facilities, bringing employment to the local area and economic and environmental benefits to both the local community and large industrial energy users, whilst delivering attractive returns to our shareholders.”
Eqtec share price
EQTEC shares today surged 11.2% to trade at 1.29p having rallied from Thursday’s closing price of 1.16p.