Selection of Wood for Waste-to-Hydrogen Solution at Southport

Source: 6/30/2022, Location: Europe

EQTEC plc, 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 selected Wood ("Wood") as its technology partner for design and deployment of a clean, waste-to-hydrogen solution during Phase 2 development of the Company's multi-technology, waste-to-energy project at Southport Hybrid Energy Park, Merseyside, UK (the "Plant"). The Company and Wood (together, the "Parties") have signed a Letter of Intent ("LoI") to formalise their joint intent to collaborate at Southport.

The Phase 1 plant
The Phase 1 plan for the Plant includes a waste processing facility, an anaerobic digestion ("AD") facility, combined heat and power ("CHP") engines and a 2MW battery storage facility, all developed with Anaergia, Inc., which has also agreed to provide EPC and O&M services for Phase 1, as the Company announced on 24 June 2022. The waste processing facility would separate renewables for recycling elsewhere, separate organics for use by the AD facility and produce refuse-derived fuel ("RDF"). The Phase 1 Plant would convert 80,000 tonnes of waste per year for six million cubic metres of biomethane to be injected into the national gas transmission system, also pulling gas from the grid to generate 9MWe for export to the national electricity transmission system.

The Phase 2 RDF-to-hydrogen solution
The Company, which is leading development of the Plant, has been working on a Phase 2 plan which could add EQTEC synthesis gas ("syngas") technology to convert 25,000 tonnes of RDF per year, supplied by the Plant's waste processing facility, into an estimated 2.5 - 3.0MWe of clean electricity.

More recently, and in line with their Strategic Collaboration Agreement ("SCA"), the Company and Wood have agreed to co-develop a RDF-to-clean hydrogen solution that would replace or augment the Phase 2 RDF-to-electricity solution. The RDF-to-hydrogen solution would combine the Company's syngas technology with Wood's VESTA syngas-to-hydrogen technology. Implementation of the solution is subject to further planning permission.

With both Phase 1 and Phase 2 solutions in place, the full Plant facilities are expected to export to the grid the equivalent of 20% or more of Southport's energy requirement.

Letter of intent

To formalise the collaboration with Wood at Southport, the Parties have signed a LoI based on their formal SCA and which specifies they will:
· Be exclusive partners for pursuit of the Southport RDF-to-hydrogen solution;
· Jointly develop an integrated, RDF-to-hydrogen solution applicable at the Plant;
· Appoint EQTEC to lead the customer interaction for the joint proposal and sub-contract to Wood for the VESTA elements of the integrated, RDF-to-hydrogen solution;
· Collaborate toward formal, integrated solution proposal and contract in good time and in line with the development schedule; and
· Pursue development of end-to-end technology solutions that apply EQTEC and Wood technologies more generally, with the Southport project serving as a demonstration of the integrated capability.

The Parties' intent to work together on the proposed RDF-to-hydrogen solution for the Plant represents the active application of the SCA as announced by the Company on 26 November 2021. Under the terms of the SCA, the Parties will jointly target and pursue market opportunities for collaborative development and deployment of clean, waste-to-hydrogen and waste-to-synthetic natural gas ("SNG") solutions and delivery of related projects.

The SCA is aimed at expanding availability and application of EQTEC's Advanced Gasification Technology and syngas production into new markets, combining it with Wood's established VESTA methanation technology, engineering capabilities and capacity for scale. The Parties anticipate joint development of new capabilities and solutions to lead innovations in the emerging market for renewable hydrogen and SNG and support the drive to net zero.

Jeff Vander Linden, COO of EQTEC, commented:
"Since the start of our formal collaboration in late 2021, we have enjoyed a close, working relationship with Wood characterised by common plans, regular meetings and visits, a joint pipeline of opportunities and active, documented contributions to multiple projects. We have been impressed with Wood's commitment to true collaboration and to advancing the development of innovative technology. Our joint efforts at Southport with Wood will not only generate a unique, waste-to-hydrogen solution, but will also introduce the Southport community to a solution for clean, circular, sustainable energy from waste. The future of renewable energy will be a mixed economy with diverse technologies, and even the relatively compact Southport plant will demonstrate that. Such projects are at the cutting edge of innovation in the UK. We look forward to these and future opportunities with Wood to demonstrate successful, sustainable cleantech in practice."

Further information about Southport Hybrid Energy Park
EQTEC is co-developer and gasification technology provider of the development project for Southport Hybrid Energy Park, working closely in partnership with Rotunda Group Limited and its subsidiary Shankley Biogas Limited at Watts Industrial Estate, Southport Hybrid Energy Park, Crowland Street, Southport, Merseyside, UK. In September 2021 the Company signed a conditional Share Purchase Agreement to acquire full ownership of the Project.

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