Collaboration Framework Agreement with CompactGTL
07 July 2022
("EQTEC", the "Company" or the "Group")
Collaboration Framework Agreement with CompactGTL
EQTEC plc (AIM: EQT), a world-leading technology innovation company enabling the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and other energy production, is pleased to announce that it has signed a Collaboration Framework Agreement (the "Agreement") with CompactGTL Limited ("CompactGTL"), a leading, small scale, modular, gas-to-liquids ("GTL") company specialising in the production and use of synthetic fuels from gases, including natural gas, synthesis gas and off-gases.
With a strong track record applying innovative approaches to GTL in the oil & gas industry, CompactGTL is actively considering application of its capabilities to production of new fuels, and especially to conversion of synthesis gas ("syngas") into sustainable, drop-in, liquid fuels for industries that are more difficult to decarbonise, such as the aviation and heavy haulage industries. Given EQTEC's track record with production of syngas tuned to specific feedstock and offtake requirements, CompactGTL view EQTEC's syngas as a strong complement to its GTL capabilities for production of sustainable, synthetic fuels.
Through the Agreement, the Company and CompactGTL (together, the "Parties") have agreed to collaborate on the design, development, construction and operation of waste-to-fuel projects and other synthetic fuel and energy infrastructure projects, with an initial focus on small-scale, modular, waste-to-fuel plants. The Parties intend to integrate their respective technologies and know-how to pursue a growing number of opportunities for clean, sustainable liquid fuel production. The Company will provide project development, syngas technology solutions, engineering and technical design services. CompactGTL will provide GTL technology solutions and access to development sites, funders, infrastructure investors and blue chip offtakers.
The Parties have also agreed to promote and introduce each other to commercial opportunities and to jointly develop projects. The Parties have identified a potential pilot-demonstration project (the "Project") for which they will commence feasibility work as soon as possible. The Project would focus on designing and developing the first, small-scale, commercial plant utilising RDF as feedstock in the production of sustainable liquid fuels, applying both Parties' technologies. The Parties have identified a location for the project and are currently in discussions with the site owner about acquiring rights to developing the project.
The Agreement, valid for an initial, two-year period, comes in the wake of several similar announcements by the Company since 2021, whereby it has confirmed formal agreements with a range of technology and delivery partners whose capabilities complement the Company's own. Through these relationships, the Company seeks to develop a global partner network to support delivery of EQTEC's proposition of its world-leading syngas technology for a range of baseload energy and biofuel solutions in the Net Zero future. With this most recent Agreement, the Company aims to position itself in the emerging market for synthetic fuels and commits its capabilities to developing clean, efficient fuels through conversion of a variety of waste products.
Any projects the Parties elected to progress to full development would be subject to separate, detailed contracts. The Company will update the market as projects under review are qualified and managed through the pipeline.
David Palumbo, CEO of EQTEC, commented:
"EQTEC's ability to design, model, deploy and commission its proprietary and patented process technology to produce highly efficient, versatile and clean syngas from a wide range of waste types makes us uniquely fit for a range of offtake applications, including liquid fuels. To date, we have targeted our efforts on projects for clean power, thermal energy, hydrogen and synthetic natural gas. I am especially happy now to add liquid fuels to that list, as market interest grows for sustainable aviation and ground fleet fuels. CompactGTL are uniquely positioned as partners, with the technology and a team deeply expert in process technologies, to collaborate with us toward rapid realisation of highly efficient fuels for the Net Zero future. We are excited to get moving in this market."
Anar Asgarov, CEO of CompactGTL, commented:
"CompactGTL has already proven itself in the oil & gas sector and is very happy now to be turning our attention to the growing sector for clean, renewable energy. Our ability to transform a variety of gases into liquid fuels is well suited to syngas conversion, and our technology works. Our greatest challenge to date has been finding a sufficiently pure syngas that can be tuned for the sorts of fuels that are suitable for markets such as aviation and heavy haulage. Discovering EQTEC's end-to-end process capabilities and the quality of syngas its technology produces was decisive. We are delighted to formalise our relationship, with a view to joint work on a demonstration plant that will open the door to new markets for syngas-to-fuel solutions."
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.
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About EQTEC plc
As one of the world's most experienced gasification technology and engineering companies, with a growing track record of delivering operational and commercial success for transforming waste-to-energy through best-in-class technology innovation, engineering and project development, EQTEC brings together design innovation, project delivery discipline and solid commercial experience to add momentum to the global energy transition. 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, supplies and builds advanced gasification facilities in the UK, EU and US, with highly efficient equipment that is modular and scalable from 1MW to 30MW. EQTEC's versatile solutions process over 50 varieties of feedstock, including forestry wood waste, vegetation and other agricultural waste from farmers, industrial waste and sludge from factories 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 synthetic 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 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 www.eqtec.com.
CompactGTL (CGTL), with headquarters in the UK, is one of the world's leading, small scale, modular Gas- To Liquids (GTL) companies. Since its inception in 2006, CGTL has focused its technology development and commercialisation programme on the upstream oil & gas sector, recognising problematic stranded gas as the most compelling market opportunity.
CGTL has focussed its development activities on delivering what commercially viable plants need to achieve and has developed a unique, patent- protected and proven GTL process utilising Fischer Tropsch (FT) catalytic conversion. The CGTL small- scale GTL technology has been proven to work for the conversion of associated gas into synthetic liquids at the point of production. The technology has powerful oil company endorsement by Petrobras who successfully operated CGTL's Commercial Demonstration Plant for 3 years in Brazil.
CGTL now sees a huge new opportunity to transition the company from a focus on primary fossil derived feedstocks to a focus on biogenic feedstocks, such as residual biomass, refuse derived fuels and municipal solid wastes, that can be turned into valuable and sustainable liquid fuels. To achieve this CGTL has partnered with EQTEC as we believe there is significant synergies in the integration of CGTL's FT technology and EQTEC's proven ability to produce high quality synthesis gas from a range of feedstocks.