Business
Additional Investment in North Fork Project
Additional Investment in North Fork Project.
About this update from Forgent Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0800P\n EQTEC PLC\n 14 October 2021\n \n \n \n \n 14 October 2021\n \n \n EQTEC plc\n \n \n (\"EQTEC\", the \"Company\" or the \"Group\")\n \n \n \n \n \n Additional Investment in North Fork Community Power Project\n \n \n \n \n \n EQTEC plc (AIM: EQT),\n a world-leading gasification solutions company building the future of a cleaner waste-to-energy industry,\n has reinforced its commitment to California, to forest fire prevention and to clean energy production, by investing an additional c. US$2.8 million (c. £2.1 million) in the North Fork project in California, USA (the \"Project\"). The additional investment will increase the Company's equity in the project to 49%. Further to its announcement of 12 July 2021, the Company has also provided a US$4.5 million convertible loan facility to fund the development of the Project.\n \n \n \n \n \n The Project will result in a 2 MWe biomass-to-energy plant based on EQTEC Advanced Gasification Technology that will transform locally sourced forestry waste into power and biochar for the local community. As previously announced, the Project has encountered successive delays since late 2021 as consequences of the Covid-19 pandemic and fires near the construction site. Shipping delays, legally enforced work stoppages during fire warnings and continual re-scheduling of work all undermined progress with construction and complicated retention of sub-contractors. Despite this, EQTEC technology has been delivered on site and construction work has progressed to where foundations are in place and steel structures have been erected, with much of the core gasification equipment installed.\n \n \n \n \n \n The three Managing Members of the project SPV, North Fork Community Power LLC (\"NFCP\"), which are the Company, development partner Phoenix Biomass Energy, Inc. (\"Phoenix\") and local community representative North Fork Community Development Council (\"NFCDC\"), have been working since March 2021 with the Project bondholders Lapis Advisers LP, (\"Lapis\") and an Investor Member to negotiate terms for additional funding to support the Project through to live operation. The Company's investment of c. US$2.8 million (c. £2.1 million) has increased its equity shareholding in NFCP from 10% to 49%.\n \n \n \n \n \n This month, the Company also ...