Irish gasification technology and engineering company EQTEC announced that it has completed the acquisition of a 1.2 MW waste-to-energy gasification plant in Belisce in eastern Croatia.
The statement from the company said that the acquisition was carried out through Synergy Projects, a joint venture between EQTEC and its Croatian project development partner Sense ESCO.
The joint venture has signed a share purchase agreement for the acquisition and funding of the project special purpose vehicle and that the acquisition was funded by EQTEC through a 550,000 euros loan and a 1.65 million euros 10- year loan provided by a third party.
The power plant, originally commissioned in 2016, will be recommissioned by the end of next year to convert 8,000 tons per annum of forestry wood waste from local farms and forests into 1.2 MW of green electricity and heat for use in the local community. A network connection application will be made for the plant in the second half of this year.
EQTEC also said that active discussions with investors regarding the plant are currently underway, toward financial close in the coming months. It estimates that the plant, built around EQTEC’s Advanced Gasification Technology, will generate an unlevered IRR of 12 % and annual EBITDA in excess of 850,000 euros. The contract value of EQTEC’s technology sales for the plant is expected to be 1.7 million euros in technology and engineering upgrades.
In addition to being co-owner, operator and technology supplier to the plant, EQTEC will also be the operation and maintenance contractor after commissioning.
