Eqtec provides updates of biomass projects in France, California

By Erin Voegele | November 14, 2019

U.K.-based gasification company Eqtec plc has announced an agreement to develop a 1.18 MW biomass gasification plant in France and released a project update on its 2 MW biomass project in North Fork, California.

Eqtec announced Nov. 13 that its wholly owned subsidiary Eqtec Iberia SLU has entered into an agreement for the development of a proposed 1.18 MW net biomass gasification power plant project in Gratens, France, with Biomasse 31 and its owners.

Under the agreement, Eqtec is provide its gasification technology for the project. Its Iberia subsidiary will act as project manager and provide technology, equipment and services. Biomasse 31 will be responsible for all project permitting and licensing.

Earlier in the month, on Nov. 6, Eqtec released an update on its 2 MW North Fork Community Power LLC plant in California.

The statement indicate NFCP was granted final approval by the state of California to issue tax-exempt bonds totaling $9.3 million and on-tax-exempt bonds totaling $5.5 million in July. The approval represents a key milestone before the bonds can be issued to potential investors. Eqtec said the proceeds from the bonds, together with its investment in-kind of $2.5 million, is expected to enable the project to reach financial close.  

According to Eqtec, due diligence being conducted by potential subscribes for the bonds and the finalizing of legal documentation has been ongoing for several weeks. While the company initially expected the process for the issue of the bonds to be complete in October, Eqtec said disruptions caused by forest fires has caused the process to be delayed. In order to potentially accelerate the closing of financing, Phoenix Biomass Energy Inc. and Eqtec have agreed, in principle, a path to financial close with the potential investors in the bonds, which does not require the sale of the tax credits. Financial close is currently expected to occur before the end of the year.