Significant revenue growth with strong momentum thanks to a robust pipeline of projects, a resilient business platform, and an ever-expanding partner ecosystem
LONDON, April 26, 2022 /PRNewswire/ -- EQTEC plc (AIM: EQT, "the Company" or "the Group"), 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 its audited results for the financial year ended 31 December 2021 ("FY2021").
In FY2021, the Company reported revenue of €9.2 million (410% FY2020 revenue of €2.2 million) and a loss of €4.7 million (FY 2020: €5.8 million loss). The Company's net assets increased to €43.4 million as at 31 December 2021 (31 December 2020: €25.3 million), and cash remained stable, with a balance of €6.4 million as at 31 December 2021 (31 December 2020: €6.4 million).
The Company delivered growth across seven geographies, with 12 projects under development, 3 additional plants under construction, 2 Market Development Centres under commissioning, and 2 new projects that led to financial close (with financing for a 3rd in progress). Furthermore, the Company has developed its growth platform, having incorporated formal legal entities in Croatia and Greece, with two more expected in 2022; initiated key strategic partnerships with Wood, Toyota, Logik, and H2; enhanced recruitment for engineering and project development talent; and raised £16m for market, project, and capability growth.
Robust Project Pipeline
The EQTEC projects that progressed to construction include: the North Fork Community Power (NFCP) project in the USA, which will help sequester carbon, reduce wildfire risk, produce green energy, create jobs, and support the local community while generating tradeable carbon credits; a biomass waste-to-energy plant in Italy to be repurposed as a Market Development Centre (MDC); two Croatian gasification plants – 1.2 MWe biomass-to-energy gasification plants in both Belišće and Karlovaç; and the first advanced gasification, waste-to-energy project in Greece.
There were also a range of projects under development across the USA, the UK, France, Greece, and Ireland. These include, the Blue Mountain Electric Company LLC opportunity in Wilseyville, California, USA;, the Southport and Deeside projects in the UK; the signing of a letter of intent with SEPS SAS of France to pursue the safe and clean transformation of contaminated plastics in France; a signing of an MoU with Nobilis and the formation of EQTEC Synergy Project Limited, and the acquisition of project rights in Nevrokopi, Drama for a biomass-to-energy plant in Greece; and three biomass-to-bioenergy projects in Ireland.
Corporate Alignment Initiatives
The Company also implemented alignment initiatives to put its future growth on a more sustainable path:
Research and Development: The Company completed a successful R&D programme in December, including tests with Refuse Derived Fuel (RDF) and others with contaminated plastics, all at its R&D facility in France, operated in partnership with Université de Lorraine.
Collaboration with Major Partners: The Company signed a strategic collaboration agreement with Wood for joint development of integrated technology solutions for waste-to-SNG and waste-to-hydrogen and with H2 Energy Solutions to pursue opportunities for the deployment of waste-to-hydrogen and other solutions (particularly in Germany and Turkey).
Outlook
By the end of 2022, the Company expects to make fully operational two MDCs and two additional plants under construction for other owner-operators. It also expects to reach financial close on additional projects that extend existing propositions but also add new capabilities with different feedstock and new offtake applications. The Company is targeting continued, strong revenue growth and reduction in EBITDA losses, with planned investment in new and innovative projects that raise EQTEC's visibility and range of propositions.
To further position EQTEC's technology as a replacement for fossil fuel technologies and support growth and scale, the Company will focus on four key areas of development. First, it will invest in its go-to-market model, formalising subsidiaries in the USA, the UK, France and Italy, with JVs in Croatia, Greece and Ireland. The company is looking again to Asia, where it has long had demand and see increasing opportunity. Second, it will invest in innovation, with a full R&D programme in 2022 and a three-year strategy for technology development with university partners as well as Wood and other, top-tier technology businesses to be announced. Third, it will enrich its global network to include multinational, Tier 1 development, delivery and technology partners as well as local, market-specific partners, including project funding partners. Fourth, it will invest in talent in its technical and corporate centres as well as in its go-to-market partners, to deepen and broaden capabilities with technology innovation, project development and corporate venturing. Finally, the Company has ramped up its engagement with policymakers and influencers in the EU, UK and USA, toward greater awareness and understanding of EQTEC's capabilities, propositions and place in the Net Zero future.
David Palumbo, CEO of EQTEC, commented: "We set ambitious targets for 2021 and delivered more than 4x revenue over 2020, building the momentum we intended. We converted more opportunities than ever into focused, planned projects and amongst these was closure of both of our targeted MDCs in Italy and Croatia. We formalised majority-owned JVs in Croatia and the Aegean and invested in our go-to-market presence across USA, UK, France, Italy, and Ireland, with a view to increasing pace and impact in those markets. Critically, we also started extending our partnership network to major players that will credibly support our growth into new geographies and solutions."
"I am especially proud of these achievements in the face of strong market headwinds, including significant price increases and delays in receiving critical raw materials or manufactured parts. Our business platform grows increasingly resilient as we add partners and new talent to our global network. From post-Covid challenges to COP26 to more recent geopolitical events, we experience more demand than ever and are taking our place as a leading technology innovator for fossil fuel replacements and clean, baseload energy and biofuels, as well as an innovator of new business models for energy independence and security."
About EQTEC plc
As one of the world's most experienced gasification technology and engineering companies, and with a growing track record of operational and commercial success in the waste-to-energy space through its best-in-class technology innovation, engineering, and project development, EQTEC brings together design innovation, project delivery discipline, and solid commercial experience to the global energy transition. EQTEC's proven, proprietary, and patented technology is at the centre of clean energy projects; local waste sourcing, business promotion, and job creation; and the transition to localized, decentralized, and resilient energy systems.
Further information on the Company can be found at www.eqtec.com.