David Palumbo, CEO of EQTEC PLC (LON:EQT), outlines the market opportunity for EQTEC and their Waste-to-Energy technology in an interview with UK Investor Magazine.

EQTEC PLC are a waste technology company listed on London’s AIM and have recently unveiled a number of strategic partnerships to utilise their waste-to-energy technology.

The most recent of these was with German EPC company ewerGy to develop a portfolio of gasification projects in Greece and the Balkans.

EQTEC’s technology uses feedstock such as refuse and farmers waste in their gasification processes to create an energy sources.

The company has a diverse revenue generation channels including technology sales, engineering contracts and maintenance fees. EQTEC also take stakes in operations by providing the equipment which they can then charge services fees on.

By early 2020 more revenue had been generated than for the whole of 2019, demonstrating the growth in EQTEC’s business model.

Summarising the business model, Jon Levinson of SI Capital wrote in a note:

“Projects tend to be bespoke, but the core characteristic start with a long-term local supply of waste in need of elimination and conversion. EQT joins with partners such as the waste operators, EPC (Engineer Procure and Construct) contractors and capital providers, as they collaborate to build sustainable waste elimination and clean energy infrastructure.

“EQTEC supplies the waste elimination and energy recovery technology and provides engineering and design services to the projects. Post commissioning also providing O&M (Operation & Maintenance) Services so generating recurring revenues over the project’s life. Profit margins will vary from contract, but we anticipate an average of around 15%.”