Ireland-headed EQTEC plc (formerly REACT Energy plc), a technology solution company for waste gasification to energy projects, has recently announced that it has signed a Memorandum of Understanding (MoU) with Phoenix Energy, a California based power company, to supply its proprietary EQTEC Gasifier Technology (EGT) for two biomass power plants in California.
Phoenix Energy is a US-based private label power company that builds, owns and operates on-site biomass gasification plants in partnership with businesses in the agricultural, waste, and forest industries. According to a statement, EQTEC has signed a Memorandum of Understanding (MoU) with Phoenix Energy for two contracts totaling approximately EUR 10 million.
We are delighted to be the exclusive supplier of technology to Phoenix Energy. The USA is a key country for waste to gasification technology and we are excited to be entering this market with our first project with Phoenix Energy. These Californian projects are exciting opportunities for EQTEC and we’re extremely proud to be selected by Phoenix. This demonstrates the flexibility of EQTEC technology and our ability to be commercially competitive in delivering projects of differing scale and operating on many fuel types globally, said Ian Price, CEO of EQTEC plc.
Key elements of the MoU include:
- Phoenix considers EQTEC as the exclusive technology supplier of a 2 MWe gasification plant and a 3 MWe gasification plant for the 12 months from the date of the MoU
- Phoenix is responsible for obtaining the permits, licences and authorisations (PLA), Power Purchase Agreements (PPA) and Feedstock Agreements for both projects which are anticipated to be in place in Q4 2018
- Phoenix or any third party associated to Phoenix to provide the necessary equity and debt financing for the projects
- Financial close is expected in late Q4 2018 and the purchase contracts executed shortly thereafter
Subject to the outcome of these first two projects, Phoenix has indicated their desire to utilise EQTEC technology and equipment on other future projects in the United States (US) in respect to its development pipeline that utilises gasification technology.
We are pleased to have been chosen by Phoenix Energy for the Californian projects and our new relationship with them supports our goal in making EQTEC the industry leader of energy from waste technology. The company continues to make good progress in pursuing significant opportunities in the near term and we hope this is the start of a significant growth period for EQTEC, ended Ian Price.