Ireland-headed EQTEC plc (previously REACT Energy plc), a technology solution company for biomass gasification to energy projects has announced that it has signed its first equipment purchase contract with Phoenix Energy LLC (Phoenix), in relation to the company's first biomass power plant in California, United States (US).
In September 2018, EQTEC announced that it had signed a Memorandum of Understanding (MoU) with Phoenix Energy LLC, a San Franciso, California (CA) based power company, to supply its proprietary EQTEC Gasifier Technology (EGT) for two biomass power plants in California, USA, expected to be valued in the region of EUR 10 million.
We are delighted to be taking our relationship with EQTEC forward and believe this solution could have a wide application for US Distributed Energy market, said Gregory Stangl, CEO of Phoenix Energy.
Converting the MoU into a first formal contract with Phoenix represents a significant milestone for EQTEC and management expects this first contract to start generating revenue during H1/2019, continuing through H2/2019 and 2020.
Phoenix will be the first customer in the US to utilise EQTEC’s gasification-to-energy technology and EQTEC expects that this will lead to further opportunities throughout the American market.
This is a landmark deal for EQTEC which highlights the global reach of our technology. As part of EQTEC’s previously announced strategic review and Growth Optimisation Plan, our goal is to successfully execute contracts from our current pipeline of projects. This contract represents the first contract signed as part of this plan and the Company will continue to focus on executing opportunities in its project pipeline, including the contract for Phoenix’s second power plant, in the near term. As I have previously stated, EQTEC’s expanding portfolio of projects continues to present significant near-term revenue-generating opportunities for the Company. Our aim is to grow EQTEC into a market-leading FTSE listed company. We look forward to providing shareholders with further updates in the near term on the Company’s pipeline of projects, which includes opportunities with values ranging from EUR10 million to EUR 100 million, commented Ian Price, CEO of EQTEC plc.
Work on the project is expected to commence immediately and particulars of the contract include:
- EQTEC will provide its biomass gasification-to-energy technology and equipment to Phoenix Energy;
- EQTEC will initially deliver the engineering design for Phoenix’s first power plant within the next two months;
- Phoenix Energy and its client will then review the engineering design in order to determine the equipment order for the first power plant;
According to EQTEC, Phoenix is making “good progress” with the permits, licenses, and authorisations (PLA), Power Purchase Agreements (PPA) and Feedstock Agreements for the project and they are anticipated to be in place before the completion of the engineering design work.
The signing of this contract with Phoenix proves that our patented technology is among the best in its class and we look forward to working alongside Phoenix and other partners in executing further contracts worldwide. The US market is of particular interest to EQTEC given its size and potential, said Yoel Alemán, CTO of EQTEC plc.