LONDON (ShareCast) - (Sharecast News) - Biomass gasification-to-energy technology company EQTEC has signed its first equipment purchase contract with Phoenix Energy, in relation to its first power plant in California, it announced on Tuesday.
The AIM-traded firm had announced on 24 September that it signed a memorandum of understanding (MoU) with Phoenix - a California-based power company - to supply its proprietary 'EQTEC Gasifier Technology' (EGT) for two power plants in the state, expected to be valued in the region of €10m.

Converting the MoU into a first formal contract with Phoenix represented a "significant milestone" for EQTEC, the board said, with management expecting the first contract to start generating revenue during the first half of 2019, continuing through the second half and 2020.

Phoenix would be the first customer in the US to utilise EQTEC's gasification-to-energy technology, and the company said it expected that it would lead to further opportunities throughout the US market.

"We are delighted to be taking our relationship with EQTEC forward and believe this solution could have a wide application for US distributed energy market," said Phoenix Energy chief executive officer Gregory Stangl.

Ian Price, CEO of EQTEC, added that the deal was a "landmark" for EQTEC, which highlighted the global reach of the company's technology.

"As part of EQTEC's previously announced strategic review and growth optimisation plan, our goal is to successfully execute contracts from our current pipeline of projects," Price explained.

"This contract represents the first contract signed as part of this plan and the company will continue to focus on executing opportunities in its project pipeline, including the contract for Phoenix's second power plant, in the near term."

Price said that, as he had previously stated, EQTEC's expanding portfolio of projects was continuing to present "significant" near-term revenue-generating opportunities for the company.

"Our aim is to grow EQTEC into a market leading FTSE listed company.

"We look forward to providing shareholders with further updates in the near term on the company's pipeline of projects, which includes opportunities with values ranging from €10m to €100m."

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