Ireland-headed advanced gasification developer EQTEC plc has announced that further to previous announcements in 2019 of the signing and extension of a conditional Memorandum of Understanding (MoU) with COBRA Instalaciones Y Servicios SA (COBRA), and Scott Bros. Enterprises Ltd (Scott Bros) to jointly develop the proposed 25 MWe Billingham Energy waste gasification plant in Haverton Hill, Billingham, UK, the Parties have agreed to further extend the MoU exclusivity period to September 22, 2020.
Subsequent to the previous extension to the MoU, as announced in October 2019, EQTEC says that it has commenced discussions with potential co-developers and funders to the project, a number of which are “progressing well.”
EQTEC also instructed and paid the grid operator, Northern Powergrid, to provide a full quotation for the grid connection, which has been received. The company also initiated technical due diligence with potential funders and insurance providers, which is ongoing.
In addition to the extension to the MoU exclusivity period, Scott Bros has undertaken to enter into a legally binding option agreement, which, if agreed, will grant EQTEC and its partners the right, but not the obligation, to purchase the entire issued share capital of Billingham EFW Ltd, the project special purpose vehicle (SPV), from Scott Bros, subject to agreement on consideration and other terms.
The MoU extension announced sets out the intention of executing this option agreement within 45 days and that such option agreement, if and when entered into, will supersede all other agreements between the Parties regarding the potential acquisition of the SPV.
