January 2 (Renewables Now) - Irish gasification technology supplier EQTEC Plc (LON:EQT) on Thursday said it had completed the acquisition of a 19.99% stake in North Fork Community Power (NFCP) LLC.
NFCP is a special purpose vehicle created to build and operate a 2-MW biomass project in North Fork, California. The acquisition was first announced last June and was completed as the project reached financial close on December 31. The consideration for EQTEC's investment is being satisfied solely by the supply of equipment valued at USD 2.5 million (EUR 2.3m), it said.
The project is the first biomass gasification power project jointly developed by EQTEC and Phoenix Biomass Energy Inc under a partnership announced last May. Once commissioned, which is due to happen by the end of the first quarter of 2021, the biomass plant will be valued at about USD 20 million. Phoenix Biomass Energy Inc is also a shareholder in NFCP. EQTEC is providing equipment as well as engineering and design services for the project.
"We see the funding of our first project in the US as an important milestone to attract funding for the rest of the Phoenix project pipeline and we believe the relationship will develop beyond the next four projects which are currently under exclusivity," EQTEC's CEO, David Palumbo, said.
(USD 1.0 = EUR 0.909)