EQTEC PLC Secures Debt Financing for Greece’s First Waste-to-Energy Project

EQTEC PLC (AIM:EQT) has secured debt financing to cover most of the construction cost of a 1 MWe (megawatt electric) waste-to-energy project in Greece, with much of the remaining financing expected to come from a debt subsidized by the government.

Optima Bank and the company have signed terms and conditions for a credit facility to enable construction at the Livadia site, 100 km northwest of Athens, where waste-to-energy gasification will be installed to convert waste mixed farms of local farms in electricity.

The credit facility would provide senior debt of up to 75% of the total capital value required for the project, EQTEC said, with the balance held in equity by its joint venture EQTEC Synergy Projects.

Before signing the loan, independent engineers from the TÜV will have to certify the project, which should be completed by the end of September.

EQTEC said its JV partners are in talks with energy transition infrastructure funds to sell part of the capital of the Livadia project and other nascent projects in the portfolio.

The joint venture is also confident that all projects currently in its pipeline for Greece will be eligible for funding under the Greek Recovery and Resilience Facility (RRF), “making low-cost subsidized debt available to projects”.

Optima Bank has reportedly expressed interest in financing other projects developed by the JV if support from the RRF can be attained.

Grant Thornton Greece has been engaged to analyze eligibility and possibly prepare and support the RRF application process.

“As economies and societies struggle in the aftermath of the Covid pandemic, we are encouraged by this kind of support for innovation that will move communities away from fossil fuels by providing local baseload energy from local waste. “, said David Palumbo, chief executive of EQTEC.

“We see this business model gaining traction in many of our target markets and we look forward to accelerating its implementation across Greece and beyond.”

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