January 15 (Renewables Now) - EQTEC plc (AIM:EQT), the Ireland-based gasification technology firm, said Tuesday it has secured a formal contract to supply equipment to Phoenix Energy for a biomass project in California.
In September 2018, EQTEC and Phoenix Energy signed a Memorandum of Understanding (MoU), under which the Irish firm would supply the EQTEC Gasifier Technology for two biomass-fired power plants in California. Phoenix is EQTEC’s first US customer to use the patented gasification-to-energy technology.
Under the terms of the order, EQTEC will deliver the engineering design for Phoenix Energy’s plant within the next two months. The size of the equipment order will be determined after the design is reviewed by the customer.
Phoenix Energy is to have all licences for the project and a power purchase agrement (PPA) in place before the engineering design work is completed.
EQTEC expects that the contract will generate revenues over the course of 2019 and 2020. Executing the contract for the second Phoenix Energy plant is anticipated in the near term. EQTEC believes the projects in California would lead to other opportunities in the US market.