Eqtec PLC on Tuesday said it raised funding to support additional investments to make the Eqtec Italia waste energy plant more resilient to changing economic conditions.
The Irish gasification company raised €1.45 million through a combination of shareholder loans and equity from Quainstone Ltd and Eqteq, each subscribing approximately for half of the amount. Eqteq said its shares remains largely unchanged as the majority of its participation was through a shareholder loan.
MetalNRG PLC, an investor in the plant, said it did not participate in the funding. The London-based investor in natural resources and energy said this further investment has resulted in a dilution of its economic interest in the project to 16%.
The funding will be used to create enhancements to the plant, including enabling it to produce biochar as a by-product to create additional revenues. The plant will also see the add-on of a dryer and thermal oxidizer to make it more ‘self-sufficient’ commercially whilst reducing operating expenses.
The plant will get an additional feeding in system to accommodate both low density and high density feedstocks, which MetalNRG said will accommodate for a broader range of commercial options.
Eqteq said the project remains on track, despite unexpected delays in delivery of key components and the availability of service providers to support commissioning of specific pieces of ancillary equipment.
The new financial model predicts that revenue from the plant will hit around €2.6 million and earnings before interest, taxes, depreciation, and amortization is expected to be around €1 million per year through to the end of 2027.
Chief Executive David Palumbo said: ‘Our fellow SPV Investors have supported additional investment to improve the Italia MDC’s business proposition and are already looking at other opportunities to invest and deploy Eqtec’s technology in other areas.’
Eqteq shares were up 24% to 0.40 pence on Tuesday afternoon in London.
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