EQTEC (EQT) Announces Billingham Energy Project In Partnership With COBRA And Scott Bros

  • May 09, 2019 BST
  • Team Kalkine
EQTEC (EQT) Announces Billingham Energy Project In Partnership With COBRA And Scott Bros

EQTEC PLC (EQT), a technology solution company for waste gasification to energy projects, announced an agreement to develop the Billingham waste-to-energy project in county Durham. The company announced that it had signed a conditional Memorandum of Understanding to jointly develop the proposed up to 25 MW Billingham Energy waste gasification and power plant in Haverton Hill, Billingham, UK. The project, which is anticipated to process 200,000 metric tons per annum of refuse derived fuel from municipal waste, will be undertaken in partnership with the group's strategic partner for the development of the waste-to-energy projects, COBRA Instalaciones Y Servicios, and Scott Bros, Enterprises Limited.

The MOU, which sets out the basis on which the companies will collaborate to advance the project, states that the group will provide its engineering, design and technology expertise to the project and will act as lead developer and technology provider for it. The company will work with COBRA to produce operations and maintenance (O&M) and full engineering, procurement and construction (EPC) offer for the project. Through the introduction of third-party equity and debt investors, the involved parties would seek to secure the necessary funding for the construction and development of the project. The companies would seek to convert municipal waste into gas that can be used for heat or electricity and the plant will use Eqtec's proprietary gasification technology for its operations.

Financial Close is conditional on, among other things, securing the necessary funding, execution of definitive agreements between the companies and the completion of due diligence on the project. Scott Bros will be entitled to a developer's fee payable on Financial Close for assisting the concerned parties with all documentation and additional permitting required for the project. Through the MOU, the companies have been given an exclusivity period of six months, which is subject to further extension by the mutual consent of the companies.

Ian Price, CEO of EQTEC, said that the company was happy to have signed its first deal with COBRA. With an estimated project value in the range of £150 million to £180 million, and with the intention to process at least 200,000 metric tons per annum of RDF, the project has the potential to be a flagship project of significant scale. He further added that it is a major achievement for EQTEC to work alongside COBRA. Ian Fraser, Director of Scott Bros, said that the company was happy to play a part in the project which will bring significant benefits and investment in the local community.

Share Price Commentary


On 9th May 2019, at the time of writing (before the market closed, GMT 12:30 pm), EQT shares were trading at GBX 0.9475, down by 6.18 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 1.84/GBX 0.27. On the valuation front, the company was trading at a trailing twelve months P/E multiple of 10.1x. The company’s stock beta was 1.39, reflecting more volatility as compared to the benchmark index. Total outstanding market capitalisation was around £18.10 million.

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