Canaccord initiates coverage on Eqtec at 'speculative buy'

Analysts at Canaccord Genuity initiated coverage on bioscience energy company Eqtec with a 'speculative buy' rating on Tuesday, highlighting its "next-generation" waste gasification technology.

Canaccord stated that Eqtec had developed and patented a thermochemical gasification technology suitable for three distinct waste verticals – agri-food waste, biomass and municipal solid waste.

The Canadian bank said its "unique technology" was commercially proven across several business cases, returning recoverable process thermal energy and a high-grade fuel source, which can be used for electricity generation, or as feedstock for hydrogen or biofuels.

Canaccord also noted that advanced gasification had the highest process efficiency of all conventional waste-to-energy technologies, was more sustainable and provided increased control over the generation and release of greenhouse gases.

"As a result, we expect it to grow rapidly in Europe, assisted by recent regulatory changes, as well as across North America and Asia. In the near term, the company has multiple major projects approaching financial close, mostly in the UK and Ireland, and we expect multiple project-related triggers over the next few months," said Canaccord, which hit Eqtec with a price target of 3.25p.