Business
Acquisition of property housing Italy MDC plant
Acquisition of property housing Italy MDC plant.
About this update from Forgent Plc
[{"type":"text","content":"\n\n26 July 2024\nEQTEC plc\n(\"EQTEC\", the \"Company\" or the \"Group\")\n \nAcquisition of property housing the EQTEC Italia MDC plant\n \nEQTEC 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 the acquisition of two lots of property in Castiglione d'Orcia (SI), Italy that house the EQTEC Italia MDC plant and feedstock storage facilities (the \"Property\"). The Property includes land, buildings and associated rights of way. Formal completion of the Property acquisition (the \"Transaction\") occurred on 25 July 2024 and accordingly, EQTEC Italia MDC Srl's (\"Italia MDC\") ownership of the Property is now registered with the Siena provincial authorities.\n \nThe first lot of the Property houses the core gasification technology supplied by EQTEC to the plant, including the gasification reactor, the cyclone, the thermal cracking reactor, the filter and other components that comprise EQTEC's patented and proprietary end-to-end syngas production process. It also houses the control room for EQTEC's proprietary control systems and an engine room that houses a Jenbacher engine, which uses the syngas supplied by the EQTEC process as fuel to generate heat and electrical power, the former of which is recycled to support plant operations and the latter of which is exported to the national grid, earning revenues at a preferential tariff.\n \nThe second lot of the Property acquired is a large, segmented storage facility that stores feedstock to be input into the EQTEC process for thermochemical conversion, and equipment regularly used by the operations & maintenance team on site.\n \nThe consideration for the Transaction was €0.57 million in cash, funded by Italia MDC from the €2.9 million facility provided by Banda del Fucino S.p.A. announced by the Company on 16 January 2024.\n \nPrior to its legal acquisition of the Property, Italia MDC had been leasing it from Toscana Cereali Societa' Cooperativa Agricola. Following the Transaction, leasing payments no longer apply, saving operational expenditure of c. €0.1 million per annum.\n \nDavid Palumbo, CEO of EQTEC, commented: \n \n\"Italia MDC has completed the Transaction on sch...