Financial close reached on 2MW bioenergy project in California

By Erin Voegele | January 06, 2020

U.K.-based gasification company Eqtec plc announced on Jan. 2 that the company has reached financial close on a proposed 2 megawatt biomass project in North Fork, California. The project is known as North Fork Community Power LLC. Eqtec said it cooperated closely with its California-based partner Phoenix Biomass Energy Inc. to achieve financial close on the project. Phoenix Energy is also a shareholder in NFCP. The bioenergy project is currently scheduled to begin commissioning during the first quarter of 2021.

With financial close now reached, Eqtec said the equipment sale and service contract with NFCP it announced in September has now been executed. Under the contact, Eqtec will provide equipment and supply engineering and design services to NFCP. The contract has a sales value of €2.2 million ($2.46 million).

“We are delighted that together with Phoenix Energy we have now achieved financial close with North Fork,” said David Palumbo, CEO of Eqtec. “Despite facing challenges outside our control in the financial closing process, both teams worked relentlessly and creatively to achieve financial close by the year end as was required. We see the funding of our first project in the U.S. as an important milestone to attract funding for the rest of the Phoenix project pipeline and we believe the relationship will develop beyond the next four projects which are currently under exclusivity. We believe that there will be many more opportunities in California arising from the need to address the current critical situation facing the state with regards with forestry wood waste.  We further believe that our partnership will provide further benefits going forward as we continue to implement our clear growth strategy in converting biomass into clean energy in the U.S.”

“Reaching financial close on our North Fork Project is a crucial milestone for us,” said Gregory Stangl, CEO of Phoenix Energy. “We have been working on this project for a number of years and faced many challenges. The partnership established with EQTEC has been instrumental to get us here. We will use the experience and network gained in the process to show that no other group is better placed to provide the solutions required by the state of California to address its forestry wood waste problem. Our team can now focus on the next two projects in our pipeline. The second will be self-funded and we have already initiated conversations with our funders for our third Project. We face 2020 with a renewed enthusiasm and confidence that we could make a real difference for our environment and society.”