Gasification technology specialist EQTEC has signed a co-development and option agreement concerning Southport Hybrid Energy Park and the takeover of a Lancashire outfit. Deals have been struck with Rotunda Group and its subsidiary Shankley Biogas to jointly develop the scheme, which EQTEC would have the option to acquire.
The company would also be responsible for contributing 100 per cent of the development costs pre-financial close, currently estimated at £500,000, and receive a return on the funds invested in the form of a development fee.
Meanwhile, Rotunda will receive a consideration of £100,000 from EQTEC for the exclusive option to acquire Shankley Biogas, which will be treated as a development cost of the project.
Under the agreement, the gasification outfit will seek additional planning permission such that its gasification technology can be applied to make the scheme capable of converting more than 55,000 tonnes annually of refuse derived fuel (RDF) waste.
Chief executive David Palumbo said the agreements “underline EQTEC’s strategy of engaging in partnerships with strong local players in energy infrastructure which are already in advanced stages of the planning and permitting process”.
“EQTEC recently raised £10m to focus on developing projects like this, which have the potential to provide local communities and companies with a credible and commercially attractive alternative to landfill and incineration for residual municipal and commercial waste with much less of an environmental impact, while creating local jobs,” he added.
“It is selectively growing its pipeline of potential projects in the UK, as well as internationally, to help ensure that it can deliver attractive risk adjusted returns for our shareholders and wider value to stakeholders.”