EQTEC (EQT ) said an agreement has been reached by Enterprises Limited (“Scott Bros”) to extend an existing, conditional land purchase agreement relating to the land on which the proposed Billingham waste-to-energy plant in the North East of England will be constructed.
The UK and Ireland-focused energy company has highlighted to investors that the completion of the land purchase for a total of £7.59m must now occur on or before 23 December 2022.
The consideration for purchase of the project site remains £8.6m, however under the revised agreement EQTEC will need to pay an upfront fee of £0.25m on or before 24 February 2022.
A further payment of £0.5m needs to be paid on or before 30 September 2022 to Scott Bros. The payments will be deducted from the total purchase price along with the paid deposit.
Commenting, David Palumbo, CEO of EQTEC said: “The Billingham project on Teesside continues to generate strong and varied interest from investors, EPC and technology partners and offtake purchasers, including potential customers for hydrogen or biofuels.”
Shares in EQTEC were trading 12.12% higher this morning at 0.925p following the news.
He added: “Our decision last year to defer this project is already giving us the space to gather together an exciting team and to actively engage a range of potential partners in the area.”
EQTEC plans to both develop and commission the UK’s first three commercially-successful gasification plants to convert local municipal waste into clean energy for local communities.
In total, Billingham is estimated to convert 200,000 tonnes of non-recyclable household and commercial waste each year into 25MW of green electricity and 34MW of heat production.
The project is expected to create jobs and deliver environmental and economic improvements to the local community as well as, EQTEC believes, “attractive returns” for its shareholders.
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