MetalNRG Eco is working with EQTEC and a consortium of co-investors to restart a 1Mwe biomass power plant in Tuscany, Italy.

The facility is built around EQTEC technology and EQTEC Italia MDC will transform straw and forestry wood waste sustainably sourced from local farms and forests into green electricity and heat for the local community.

MetalNRG has now invested a total of Euro 700,000 for a 26.66% equity interest in the Project.

Project Highlights

EQTEC is leading the consortium (made up of the Parties) which is participating in the Special Purpose Vehicle ("SPV"), entitled EQTEC Italia MDC Srl;

The Parties, excluding EQTEC, have jointly committed to and now paid an aggregate €2.1m for an 80% equity interest, with EQTEC holding the remaining 20% equity interest in the SPV for a capital contribution of €482,000;

Once the Plant is operational, which is expected by Q2 2022, EQTEC Italia MDC Srl is expected to generate annual revenues of c. €2,000,000 and EBITDA of c. €750,000; and EQTEC has a call option to acquire some or all of the remaining equity in the Project at a fixed price during the first two years from the date of financial close. MetalNRG and the other Parties have a put option to sell some or all of their equity in the Project to EQTEC at a fixed price for the first two years of operations. Both the call and put options are set at a fixed return on the capitalisation amount and protect the Parties' capital investments.

The Plant is due to be fully recommissioned and operational by Q2 2022, with connection to Italy's national electric grid already in place. EQTEC estimates that the Plant will generate an unlevered IRR of 20% and annual EBITDA in excess of €750,000. The EPC contractor for the Project will be COS.M.I. Srl ("COSMI"), EQTEC's Italian delivery partner and a company with successful experience in building EQTEC plants. COSMI is expected to commence its role when all remaining permissions and advanced gasification equipment are fully in place.