EQTEC Provides Development Update on Deeside RDF Hydrogen Production Project

By December 8, 2021 8   min read  (1496 words)

December 8, 2021 |

Fuel Cells Works, EQTEC Provides Development Update on Deeside RDF Hydrogen Production Project

EQTEC plc (AIM: EQT), a world-leading technology innovation company enabling the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and other energy production, is pleased to announce that EQTEC’s wholly owned subsidiary, Deeside WTV Limited (“Deeside WTV”) has signed a binding supplemental agreement (the “Agreement”) with Logik Developments Limited (“Logik”).

The Agreement, inter alia, sets out the terms on which the parties have agreed to vary the terms of the existing share purchase agreement signed by Logik and Deeside WTV (together, the “Parties”), as announced on 8 December 2020 (the “Existing SPA”) pursuant to which Deeside WTV agreed to acquire full ownership of the project from Logik.

Through the new Agreement the Parties will now act in partnership and seek to develop additional waste-to-value infrastructure on the Deeside site. The Parties are currently conducting additional feasibility studies for hydrogen and other biofuels to enhance the Project, which with the currently approved planning permission includes a 182,000 tonne waste reception plant along with 2 MW anaerobic digestion (“AD”) facility and a 9.9 MWe EQTEC Advanced Gasification Technology facility.

Key terms of the Agreement

  • The Company will acquire 32% of the share capital of Logik WTE Limited (the “Project SPV“), the entity which holds the land and necessary planning permissions for the Project, from Logik for a consideration of £3.3 million to be paid no later than 31 March 2022. The Company can select to make this payment from its existing cash resources or investment raised directly at Project SPV level;
  • Under the Agreement, £500k is now being paid as a fee to Logik. The Parties have agreed that this payment will be converted to equity in the Project SPV by 31 March 2022;
  • The Project site currently comprises 6.27 hectares of land located off Weighbridge Road in the Deeside Industrial Estate. Under the new Agreement, the Parties have agreed that c. 2.4 hectares of the land will be retained by Logik to be used in connection with the proposed hydrogen/biofuel project intended to be carried out jointly between the parties;
  • The new Agreement removes any overage payments, deferred consideration and fixed dividend sum due to Logik, since the Parties intend that their relationship going forward be that of joint venture partners, rather than seller and buyer; and
  • The Parties are seeking a minimum of £10 million of third-party funding in order to bring the Project to Financial Close. Following receipt of such funding, EQTEC will invoice £1,500,000 for its project development services to the Project SPV (such fee to be reduced on a pound for pound basis if the investment received is less than £10 million), subject to certain conditions to be finalised and agreed with third-party funders.

The Parties have agreed that the provisions in the Agreement and the changes to the Existing SPA are immediately binding on them. They have further agreed to act in good faith and to use all reasonable endeavours to implement the undertakings and agreements in this Agreement, including to amend the terms of the Existing SPA and to finalise other necessary documentation such as a shareholders’ agreement for the Project SPV.

Ongoing discussions with development and infrastructure investors for the c£10 million funding required for the construction of the Project as well as owner-operators are progressing with a number of parties engaged at due diligence stage.

A collaboration agreement, as previously announced on 11 March 2021, with Toyota is now progressing and initial commercial pricing talks for the biomethane and electricity supplies have commenced.

Discussions with technology partners have been initiated in order to prepare a technical and commercial feasibility for the application of EQTEC’s technology to produce a syngas to the specification required for hydrogen and other gas-to-liquids applications.

David Palumbo, CEO, EQTEC, commented:

“The Deeside RDF-to-energy project is being developed to deliver significant decarbonisation benefits to Flintshire and North Wales. The Advanced Gasification and anaerobic digestion facilities will transform local municipal solid waste and commercial and industrial waste into green energy, powering local industry and communities. This new agreement with Logik has opened the possibility for further development of innovative infrastructure on the site and for demonstration of the wide range of applications achievable with our technology. As demand and government support for sustainable fuels and hydrogen increases, we will seek to establish more partnerships with technology partners who require a gasification solution which is able to provide syngas to specification.

“Our strategic partnerships are a key element of our strategy for growth. High quality development partners like Logik help us to accelerate our goal to see our technology in more plants, in more places sooner to help drive the Net Zero Goals. Working on projects with the same tested partners, will not only mitigate risks of execution but also reassure investors and funding partners.”

Neil Spencer, Managing Director, Logik Developments commented:

“We are very pleased to enter into this agreement with EQTEC. We see it as a strengthening of our collaboration, where we can develop projects inside a true partnership. Where Logik and MBS Partnership, our sister company, can focus on what we do best, land development and construction; and EQTEC can focus on designing solutions to deploy their world class technology. We already have our sights on other exciting projects to develop together.”

Further information about the Project

EQTEC is lead developer and technology provider for the Deeside RDF project in partnership with Logik Developments Limited and Anaergia Inc. through the Project SPV. As announced on 28 October 2021, Flintshire County Council’s Planning Committee has resolved to grant planning permission for the proposed 9.9 MWe plant to enable a complete and local waste-to-energy solution, combining a 182,000 tonne waste reception plant along with 2 MW anaerobic digestion (“AD”) and EQTEC Advanced Gasification Technology. The planning authority’s decision follows its prior approval of the site for the original plan of a recycling and AD facility. Additionally, through the Deeside RDF Project, EQTEC and Toyota are exploring an innovative, circular and sustainable waste-to-energy solution for Toyota’s engine manufacturing plant in Deeside. The site is currently on 6.27 hectares of land off Weighbridge Road on Deeside Industrial Estate, one of Europe’s largest such industrial sites. The project site is wholly owned by the Project SPV (acquired December 2020) and was formerly a Gaz de France power station.

The Deeside RDF Project is one of three RDF-to-energy projects that the Company is developing in the UK, including at Billingham, Teesside and Southport, Merseyside.

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company’s obligations under Article 17 of that Regulation.

About EQTEC plc

As one of the world’s most experienced gasification technology and engineering companies, with a growing track record of delivering operational and commercial success for transforming waste-to-energy through best-in-class technology innovation, engineering and project development, EQTEC brings together design innovation, project delivery discipline and solid commercial experience to add momentum to the global energy transition. EQTEC’s proven, proprietary and patented technology is at the centre of clean energy projects, sourcing local waste, championing local businesses, creating local jobs and supporting the transition to localised, decentralised and resilient energy systems.

EQTEC designs, supplies and builds advanced gasification facilities in the UK, EU and US, with highly efficient equipment that is modular and scalable from 1MW to 30MW. EQTEC’s versatile solutions process over 50 varieties of feedstock, including forestry wood waste, vegetation and other agricultural waste from farmers, industrial waste and sludge from factories and municipal waste, all with no hazardous or toxic emissions. EQTEC’s solutions produce a pure, high-quality synthesis gas (“syngas”) that can be used for the widest range of applications, including the generation of electricity and heat, production of synthetic natural gas (through methanation) or biofuels (through Fischer-Tropsch, gas-to-liquid processing) and reforming of hydrogen.

EQTEC’s technology integration capabilities enable the Group to lead collaborative ecosystems of qualified partners and to build sustainable waste reduction and green energy infrastructure around the world.

The Company is quoted on AIM (ticker: EQT) and the London Stock Exchange has awarded EQTEC the Green Economy Mark, which recognises listed companies with 50% or more of revenues from environmental/green solutions.

Further information on the Company can be found at

About Anaergia

Anaergia was created to eliminate a major source of greenhouse gases (“GHGs”) by cost effectively turning organic waste into renewable natural gas (“RNG”), fertilizer and water, using proprietary technologies. With a proven track record from delivering world leading projects on four continents, Anaergia is uniquely positioned to provide end-to-end solutions for extracting organics from waste, implementing high efficiency anaerobic digestion, upgrading biogas, producing fertilizer and cleaning water. Our customers are in the Municipal Solid Waste, Municipal Wastewater, Agriculture, and Food Processing industries. In each of these markets Anaergia has built many successful plants including some of the largest in the world. Anaergia owns and operates some of the plants it builds, and it also operates plants that are owned by its customers.

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