The company announced financial close for the Belišće plant and confirmed first phase funding for the Karlovač project
Both waste-to-energy projects are being developed by Synergy Projects, EQTEC’s Croatian joint venture with local project development partner Sense ESCO.
Sense ESCO has subscribed for additional shares in both Belišće and Karlovač and now owns 51% in each project, with Synergy Projects retaining 49%, EQTEC said in a statement.
The Belišće plant, which is built around EQTEC’s Advanced Gasification Technology, will be upgraded to 1.5Mwe and repowered to convert forestry wood waste from local farms and forests into green electricity and heat for use in the local community.
The funding requirement for the Belišće recommissioning is €4.2mln, of which Sense ESCO will be providing €1.7m while EQTEC will provide the balance, in addition to the €550,000 loan previously provided.
The funding required for the technology upgrades and subsequent re-commissioning at the Belišće plant has now been secured in full.
Engineering for the Belišće plant has been completed and all main components have been ordered and are expected to be on site during the final quarter of 2021 and the first quarter of 2022.
The Karlovač project involves redesigning an old site into a 3.0MWe plant which will transform locally sourced wood chips and forestry wood waste from regional forests into green electricity for use by the local community and also produce high quality biochar to supply the growing demand of this commodity in Europe.
The total funding requirement for Karlovač is forecast to be in the region of €10m, with EQTEC and Sense ESCO initially providing 25%, while third party investors and bank debt will be sought to fund the balance.
EQTEC said partial funding for the first phase at Karlovač has been secured in order to accelerate completion of the design and order equipment.
EQTEC and Sense ESCO are holding talks with investors and banks to secure additional debt and equity to fund Karlovac’s current and future phases.
They are also in discussions about the sale of equity and/or tradeable bonds in the projects either during construction or after achieving successful commercial operation.
EQTEC estimates technology sales over the life of project of €2.0mln for Belišće, of which 80% is expected to be invoiced this year, and €7.5mln for Karlovač, of which 20% is forecast to be invoiced this year.
Both are subject to the achievement of certain milestones.
EQTEC chief executive David Palumbo said: “We are very pleased to complete financial close at Belišće, our market development centre in Croatia and also confirm first phase funding for the Karlovac project in collaboration with our Croatian joint venture partner, Sense ESCO.
“Both of these projects are designed to provide a community cooperative model to local stakeholders, taking responsibly managed waste from each plant’s surrounding areas and turning it into clean energy. We are applying project delivery focus and technical innovation towards commissioning these projects and delivering value to the local communities in 2022.”
Read More: EQTEC PLC updates on funding for Croatian waste-to-energy projects