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Eqtec Shares Fell 16.7% Despite Upbeat Gardanne Project Update

Simon Mugo trader
Updated 26 Sep 2023

The EQTEC PLC (LON: EQT) share price fell 16.7% despite announcing an upbeat update about its French Biogaz Gardanne project at the former Gardanne power station. The company had completed the project's commercial and technical feasibility study and was ready to move to the following stages.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The following steps for the company include the start of the design and development work on the project, which is expected to be a waste-to-renewable natural gas (RNG) facility powered by Eqtec’s advanced syngas technology. Eqtec shares had recouped all their losses at publishing.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

The feasibility study allowed Eqtec and its partners to review the feedstock and offtake markets while evaluating four potential technology and engineering solutions. The company, working in collaboration with S3D Ingénierie SAS (S3D), a French development consultancy, reached several conclusions. 

The Group, its partners and S3D decided that a facility processing about 80,000 tonnes of industrial waste wood annually would be the optimal setup for the sustainable production of RNG and generate a decent return on investment. 

EQTEC's syngas technology will be part of the integrated solution deployed at the project and will work in tandem with Wood's VESTA methanation technology. Wood is a global engineering leader and is a partner on the project. 

The Group expects to commence the initial front-end engineering design work (pre-FEED) in the coming weeks and expects to be billed approximately €250,000 for engineering services. Once the pre-FEED work is done, the company expects to lead a complete front-end engineering design (FEED) work expected to cost at least €750,000 in fees. 

David Le Saint, EQTEC France Managing Director, commented: “With successful completion of the Feasibility, momentum is growing for the Project in terms of solution development, political support and investment attractiveness. Whilst we have already enjoyed support from all levels of the French government, we are also gaining traction with private-sector investors looking to invest in new energy infrastructure that is clean and fits well with the direction of French policy. With the RNG tariffs for France due to be announced and with the healthy pace of work on this Project, I am confident we will secure a tariff, along with critical permits that move us closer to making Biogaz Gardanne a reality.”

Eqtec share price. 

The Eqtec share price fell 16.67% to trade at 0.05p, from Monday’s closing price of 0.06p.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading