EQTEC has signed a co-development and option agreement with Rotunda Group and its subsidiary Shankley Biogas, for the Southport Hybrid Energy Park project in Merseyside, UK.
EQTEC signed a memorandum of understanding with Rotunda, the owner of a plot of land in Southport, Merseyside, which has planning permission for a waste recycling facility, an anaerobic digestion facility, and 9 MW of electrical generation with 2 MW of battery storage, exporting 11 MWe to the grid annually.
The project has qualified for the UK Government’s Renewable Heat Incentive scheme. After completing its initial due diligence, EQTEC has entered into the agreement, under which Rotunda has granted the firm exclusivity to enter into a potential transaction, whereby EQTEC can obtain full ownership of the project via EQTEC’s acquisition of the subsidiary.
David Palumbo, CEO of EQTEC, said: “I am delighted to announce this exclusive partnership to develop the hybrid energy park in Southport, Merseyside, UK, which underlines 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, and where EQTEC can add value with its proven, proprietary and patented advanced gasification technology and solutions.
“In this way, EQTEC can significantly improve both the environmental impact and the economics of many traditional waste-to-energy facilities, while potentially delivering attractive returns to EQTEC and our shareholders.
“EQTEC recently raised £10 million (€11 million) 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.
“EQTEC 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.”
The existing planning permission at the Southport site covers the construction and operation of a waste management facility for municipal, commercial, and industrial waste for 80,000 tonnes of annual residual waste, an anaerobic digestion plant, biogas injection into the National Gas Transmission System and 9 MW electrical generation with 2 MW battery storage, and to sell 11 MW to the grid.
EQTEC will now seek additional planning permission such that EQTEC’s advanced gasification technology can be applied to the project to make it capable of converting over 55,000 tonnes annually of RDF waste, which would be created by the proposed project plant and otherwise destined for landfill or incineration, generating a further 6-8 MW of green electricity.
“Rotunda secured planning on the proposed project site some time ago,” said Ricky Watts, CEO and owner of Rotunda, “and we have been looking for a partner who can deliver and operate a waste-to-energy facility to our high standards and bring employment and expertise to the local area.
“EQTEC’s advanced gasification technology has the potential to significantly improve the environmental and economic impacts of this project for the benefit of the local community and large industrial energy users alike.
“Together with EQTEC, we look forward to continuing to work closely with all local stakeholders to help ensure this project secures additional planning and gets built.”