EQTEC signs framework agreement with Phoenix Energy
Technology-solution company for waste gasification to energy projects, EQTEC, is pleased to announce that, further to its announcement of 15 May 2019, it has signed a Framework Agreement ("the Agreement") with Phoenix Biomass Energy, Inc. ("Phoenix"), a California based power company that builds, owns and operates on-site biomass gasification plants in partnership with businesses in the Agricultural, Waste, and Forestry industries.
Under the Agreement, the parties will seek to jointly develop biomass gasification power projects in the US, with five projects having already been identified. The target projects will generally be 2 to 3 MW in size, with an estimated project value between US$15 and US$20 million each (€13.5 and €18 million each). Pursuant to the Agreement, once the parties have agreed to proceed with a project, EQTEC will provide its proprietary Gasifier Technology ("EGT") together with technical design and engineering for the power plants, and the parties will work together to secure the necessary funding to develop such projects.
The Agreement builds on the Company's strategy to focus on the recovery of clean energy from biomass, one of its three key verticals as announced on 15 May 2019. It also builds upon the existing relationship with Phoenix, as announced on 24 September 2018, with Phoenix already having chosen EQTEC EGT for two power plants in California, with the design work for the first power plant having already been completed.
Phoenix, having carried out extensive technical due diligence on EQTEC EGT over the previous months, has confirmed that EGT is well positioned to address the requirements of their market and following a joint review of the Californian and US Biomass Markets, the parties have identified significant revenue generating opportunities which they wish to capitalise on in the near term. This includes developing biomass and waste gasification power plants and selling and distributing energy.
Ian Price, CEO of EQTEC, commented, "Phoenix has a track record of successfully delivering projects in California and the wider US and we are very pleased that our initial technical and commercial interactions have led to this important Agreement. It presents a perfect opportunity to combine our experiences and expertise to expand our reach, open new doors and bring further revenue generating opportunities to apply our EGT in the Biomass to Energy sector in California and throughout the US. As announced in our Business Strategy Update, the Board believes that developing key partnerships with proven counterparties with a secured projects pipeline is the most effective way to deliver multiple projects."
Gregory Stangl, CEO of Phoenix Energy, said, "Having worked closely with EQTEC on our initial projects, we are delighted to be taking our relationship to the next level with the signing of the Agreement, as we seek to jointly exploit what we know to be significant opportunities for both parties in the Californian and US Biomass Distributed Energy markets."
