EQTEC signs Billingham Energy project MoU with COBRA and Scott Bros
Ireland-headed EQTEC plc (previously REACT Energy plc), a technology solution company for biomass and waste gasification to energy projects has announced that it has entered into a conditional Memorandum of Understanding (MoU) with COBRA Instalaciones Y Servicios SA (COBRA) – its strategic partner for the development of waste-to-energy projects – and Scott Bros. Enterprises Ltd (Scott Bros) to jointly develop the proposed Billingham Energy power plant in Haverton Hill, Billingham, UK.
According to EQTEC, the up to 25 MWe Billingham Energy waste gasification power plant project in Haverton Hill is anticipated to process 200 000 tonnes per annum of refuse-derived fuel (RDF) from municipal waste.
We are extremely happy to have executed the MOU, representing our first deal with COBRA, our major strategic partner. This has the potential to be a flagship project of significant scale, with the intention to process at least 200,000 metric tons per annum of RDF, with an estimated project value in the range of £150 million to £180 million. Working alongside COBRA, on a project of this magnitude as lead developer, is a major achievement for EQTEC and enables us to use our project development expertise and network to take the Project to a successful close. We look forward to providing further updates in due course. With our project pipeline continuously expanding and developing key strategic partnerships, we aim to deliver significant value for our shareholders with key contract wins in the near term, said Ian Price, CEO of EQTEC plc.
Pursuant to the MoU, EQTEC will act as lead developer and technology provider for the project. EQTEC will also provide its engineering, design and technology expertise to the project, and will work alongside COBRA to produce the full engineering, procurement and construction (EPC) and operations and maintenance (O&M) offer for the project.
We are delighted to have entered into this agreement with the highly experienced EQTEC team, alongside a world-class EPC Group such as COBRA. We have been working closely with local government and stakeholders to advance the Project, which has included securing the planning for the Project. This type of infrastructure development will bring significant benefits and investment in the local community and we are very happy to play a part in it, said Ian Fraser, Director of Scott Bros.
The MoU sets out the basis on which the Parties will collaborate to advance the project and is subject to an exclusivity period of six months, which can be extended by the mutual consent of the Parties.
EQTEC will act as the lead developer and technology provider to the project, as well as providing its engineering, design, and technology expertise. EQTEC will work alongside COBRA to produce the full EPC and O&M offering for the project as well as seeking to secure the necessary funding for the construction and development of the project, through the introduction of third-party equity and debt investors to reach financial close.
Financial close is conditional on, inter alia, the completion of due diligence on the project, execution of definitive agreements between the Parties, the necessary funding having been secured and the EPC and O&M contracts having been entered into.
Scott Bros will assist both EQTEC and COBRA with all documentation and additional permitting required for the Project and will also be entitled to a developer’s fee payable on financial close.