Bank Refinance of Italy Market Development Centre

04 September 2023

04 September 2023


("EQTEC", the "Company" or the "Group")


Bank Refinance of Italy Market Development Centre


EQTEC plc (AIM: EQT), a global technology innovator powering distributed, decarbonised, new energy infrastructure through its waste-to-value solutions for hydrogen, biofuels, and energy generation, is pleased to confirm that it has entered into a loan facility of €2.9 million (the "Facility") to refinance its Italy Market Development Centre, located in Gallina, near Castiglione d'Orcia, Tuscany, Italy (the "Plant").


The term of the Facility is 48 months, with an annual interest rate of 2.5% over the six-month Euro Interbank Offered Rate (Euribor), which at the time of announcement makes the interest rate c. 6.5%. The Facility is provided by Banca del Fucino S.p.A. a historic private banking group based in Rome (the "Lender"). The loan is guaranteed up to 80% by MedioCredito Centrale S.p.A., which is controlled by the Italian Ministry of Economy.


Provision of funds through the Facility is subject to the Plant's achievement of certain performance criteria set by the Lender. Supported by EQTEC engineers, EQTEC Italia MDC S.r.l. ("Italia MDC"), the operating company for the Plant, is implementing a series of performance improvements anticipated to be completed in early Q4 2023, at which point, assuming the required performance criteria have been achieved, Italia MDC will draw down the amount of the full Facility.


The Plant became operational in March 2023 and EQTEC completed handover protocols and transfer of plant operations to Italia MDC in June 2023. The Company remains actively involved with supporting Italia MDC in its endeavours to drive more productive and continual operations.


David Palumbo, CEO of EQTEC, commented:


"The Facility indicates strong support for Italia MDC from a traditional primary lender and represents trust in its shareholders and commitment to supporting new energy infrastructure across Italy. We are committed to supporting Italia MDC with continuous improvements that will ensure the Plant remains a shining example of EQTEC technology in action."


This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014, as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended, and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.





David Palumbo / Nauman Babar


+44 20 3883 7009

Strand Hanson - Nomad & Financial Adviser

James Harris / Richard Johnson


+44 20 7409 3494

Panmure Gordon - Broker

John Prior / Hugh Rich


+44 20 7886 2500

Instinctif - Media & investor relations enquiries

Guy Scarborough / Tim Field

+44 791 717 8920 / +44 788 788 4794


About EQTEC Italia MDC srl


EQTEC Italia MDC srl ("Italia MDC") is a company registered in Italy for the purpose of transforming agricultural and forestry waste into electrical power and biochar in a relatively remote and heaviliy agrarian community. The Company currently owns 19.99% of Italia MDC, with an option to acquire further equity in future.


Italia MDC owns and operates a 1.1 MWe plant in Gallina (the "Plant"), a village near Castiglione d'Orcia in Tuscany's Val d'Orcia, an area considered to be the region's most scenic. It is on a site originally owned by Toscana Cereali Societa' Cooperativa Agricola, from whom Italia MDC is currently leasing and with whom Italia MDC have agreed to purchase the land by 30 July 2024. With EQTEC technology at its core, the Plant is capable of converting multiple types of biomass feedstock into electrical power and thermal energy.


Initially, the Plant is converting higher-density wood waste into electrical power for export to the national grid, for which a connection has been secured with a preferential tariff. In addition to the electricity, the Plant is producing biochar for purchase by two European wholesalers of the product. Thermal energy produced through the continuous EQTEC thermochemical conversion process is being recycled to dry the feedstock, improving the Plant's waste-to-energy conversion efficiency.


Feedstock is being delivered by multiple, local suppliers, and Italia MDC has identified additional, potential suppliers in order to maintain continuity of supply and leverage over cost and availability. Further, the Plant has been upgraded to support lower-density feedstocks such as straw or other agricultural waste. This ability to switch amongst feedstock types and suppliers adds resilience to Italia MDC's business model.


About Market Development Centres (MDCs)


MDCs are reference plants that demonstrate EQTEC technology in live, commercial environments, with application of EQTEC's versatile syngas to one of four, target solution models: Industrial; Utility; Municipal; or Agricultural. The Italia MDC is focused on the Agricultural solution model, which demonstrates the potential for smaller-scale, autonomous plants in remote areas to convert agricultural and forestry biomass into value for the local community.


The Company has accommodated a number of visits to Italia MDC by prospective investors and partners, since March, and has already scheduled a number of further such visits, including with top-tier utilities companies, infrastructure investors and a consortium of private investors with whom the Company is in discussions towards funding and sale of equity in Croatia MDC.


The Company is targeting launch of the Croatia MDC later this year in Belišće, Croatia, to demonstrate the Industrial solution model, converting industrial waste from a nearby paper mill into electrical power and biochar, returning the former to the paper mill and selling the latter on the open market.


A third MDC is being pursued in eastern France that would demonstrate the Utility solution model, helping utility companies decarbonise their plant footprints and create new energy infrastructure for new lines of business in a post-fossil fuel world.  The France MDC is expected to become operational in 2024.


About EQTEC plc


As one of the world's most experienced thermochemical conversion technology and engineering companies, EQTEC delivers waste management and new energy solutions through best-in-class innovation and infrastructure engineering and value-added services to owner-operators. EQTEC is one of only a few technology providers directly addressing the challenge of replacing fossil fuels for reliable, baseload energy. EQTEC's proven, proprietary and patented technology is at the centre of clean energy projects, sourcing local waste, championing local businesses, creating local jobs and supporting the transition to localised, decentralised and resilient energy systems.


EQTEC designs, specifies and delivers clean, syngas production solutions in the USA, EU and UK, with highly efficient equipment that is modular and scalable from 1MW to 30MW. EQTEC's versatile solutions process 60 varieties of feedstock, including forestry waste, agricultural waste, industrial waste and municipal waste, all with no hazardous or toxic emissions. EQTEC's solutions produce a pure, high-quality synthesis gas ("syngas") that can be used for the widest range of applications, including the generation of electricity and heat, production of renewable natural gas (through methanation) or biofuels (through Fischer-Tropsch, gas-to-liquid processing) and reforming of hydrogen.


EQTEC's technology integration capabilities enable the Group to lead collaborative ecosystems of qualified partners and to build sustainable waste reduction and green energy infrastructure around the world.


The Company is quoted on the London Stock Exchange's Alternative Investment Market (AIM) (ticker: EQT) and the London Stock Exchange has awarded EQTEC the Green Economy Mark, which recognises listed companies with 50% or more of revenues from environmental/green solutions.


Further information on the Company can be found at


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Eqtec (CDI) (EQT)
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