EQTEC - Update
EQTEC - Update
Commercial progress advancing and many further opportunities in the pipeline in what is now a “future proof” sector
EQTEC provides engineering and design services and sells its EQTEC Advanced Gasification Technology to waste-to-energy operators and enterprise partners. The company works together with multiple parties involved in W2E projects including the developers, waste owners, building contractors and funders with a view to ultimately providing its advanced gasification technology, associated engineering & design services and O&M services.
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Working with multiple partners to turn waste into energy
EQTEC’s business model is focused upon sourcing and providing assistance to clients in developing waste elimination projects, typically projects that have a local supply of waste which can be disposed of and turned into energy. The company works together with multiple partners involved in projects, including developers, waste owners, EPC contractors and financiers, with a view to ultimately providing its advanced gasification technology and associated engineering and design services.
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Focussed on three key verticals
Last year, EQTEC set out a strategy to focus its efforts on the following three verticals of the waste-to-energy sector: Recovery of Clean Energy from Biomass; Elimination of Waste Streams in Agri-food and Industrial Sectors; and Elimination of Waste Streams – Municipal Solid Waste (MSW) and Refuse Derived Fuel (RDF).
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Rapid increase in project pipeline
Over the past year or so EQTEC has announced a number of developments and contract wins across its three key verticals. These include; the financial close of the North Fork biomass project in California; an agreement for the development of a proposed 1.18 MW net biomass gasification power plant project in Gratens, France; and an MoU for the engineering design and installation of the first advanced gasification plant in Greece.
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Peer based valuation suggests upside of more than 400%
EQTEC now has a substantial pipeline of projects which should begin and be completed over the coming two/three years. Using a peer derived EV/EBITDA multiple we set a target price of 0.78p per share, implying 403% upside from the current price.
EQTEC is a clean energy project developer and operator. Co. identifies, develops, builds, owns and operates power plants in the UK and Ireland using clean energy technologies. Co. focuses on both large and small scale projects, providing flexibility to maximize existing land positions while diversifying development and technology risks. Co. seeks to take projects from "Greenfield" stage to "Shovel Ready" stage. Co. develops and builds projects using wood and waste wood as the sustainable fuel source. Co.'s core focus is on converting biomass or wood into clean electricity and heat. Co. has one operating segment: power generation.
Align Research is a commissioned research company founded in November 2015 in order to provide the under-served smaller company space with high quality analysis. We have an initial focus on the natural resources sector, in which we see significant opportunities given the current once in a generation bear market, however all undervalued small caps (sub £100m) are considered by our team. Align was founded by industry professionals with decades of experience in the stock markets, headed up by highly qualified individuals from both fund management and analytical backgrounds.
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