Eqtec (EQT ), a bioscience energy company, announced that its Italy Market Development Centre (MDC) is now operational. Eqtec said it has commenced handover of plant operations to Eqtec Italia MDC, the MDC's operating company. The plant is the first of Eqtec's MDCs to go online.
The 1.1 MWe plant, located in Gallina, Tuscany, had already commissioned gasification and biochar production capabilities in January 2023. On 8 March, the plant exported its first electricity to the Italian grid.
Additionally, Eqtec said Italia MDC was pursuing refinance of the plant asset by an Italian bank. A funding agreement is expected in Q2 2023. Eqtec expects a number of visits to the plant by prospective investors and partners, starting in late March. The visits include a utilities company, infrastructure investors, and private investors with whom Eqtec is in discussions towards securing funding and the sale of equity in Croatia MDC.
David Palumbo, CEO of EQTEC, commented:
"Having our first MDC transitioning to live operations is a significant catalyser to EQTEC's strategy of becoming a technology licensor for distributed new energy infrastructure. We cannot underestimate the importance of the MDCs not only to incubate demand for our technology but also to accelerate the timescales typically required from engagement to transaction, with owner operators and funding sources. We expect a busy schedule of site visits in the coming months, with strategic stakeholders including utility companies and infrastructure investors."
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Eqtec's turning on its first MDC elicited a strong response from markets, driving EQT shares up as much as 20% today. Eqtec's MDCs are reference plants that demonstrate Eqtec's technology in live, commerical environments, with applications in 4 target models - industrial, utility, municipal, and agricultural.
The Italia MDC is focused on the agricultural model, which demonstrates the potential for smaller-scale, autonomous plants in remote areas to convert agricultural and forestry biomass into a useful resource. In the current climate of strong European demand for locally produced energy, high energy prices, and ambitious net zero goals, Eqtec's synthetic gas product is expected to generate strong returns, explaining the market's reaction to the news.
Eqtec is also targeting the launch of its Croatia MDC later this year in Belisce, Croatia, to demonstrate the industrial model, converting industrial waste from a nearby paper mill into electricity and biochar. A third MDC is being pursued in eastern France that will demonstrate the utility model, helping utility companies decarbonise their plant footprints. The France MDC is expected to become operational in 2024.
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