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(Sharecast News) - Eqtec said in an update on Wednesday that it is pursuing a complementary strategic expansion alongside its core gasification business, aiming to introduce nearer-term cash flow opportunities while continuing to develop its waste-to-value technology platform, with lenders supportive of the broadened approach.
The AIM-traded clean energy technology group said its proprietary gasification technology, which converts waste and low-value biomass into syngas, power, heat and renewable fuels without incineration, remained the cornerstone of its long-term strategy.
It said the technology addressed structural demand for decarbonisation, landfill diversion and energy security, and that a growing portfolio of commissioned reference plants is expected to unlock scalable commercial returns over time.
Alongside that, the company said it was seeking to expand into capital-light, vertically integrated exposure to complementary resource assets, targeting critical and precious metals central to global electrification, including copper, gold, rare earth elements and other specialty resources used in grid infrastructure and the energy transition.
Eqtec said recent leadership appointments with extractive industry backgrounds had enabled it to accelerate the evaluation of such opportunities, while maintaining focus on gasification.
The board said the rationale for the expansion was to introduce potential earlier cash flow inflection points while gasification projects progress from development to full operational scale.
It noted that critical metals assets typically had shorter development timelines and earlier revenue generation than large-scale infrastructure projects, and said it would prioritise sustainable, capital-light opportunities in lower-risk mining jurisdictions, with an active pipeline already under review.
Eqtec said its lenders were supportive of the strategic broadening and that it was in advanced discussions regarding a comprehensive restructuring of its existing debt facilities.
The firm said the objective of the discussions was to materially deleverage the balance sheet, improve liquidity and better align the capital structure with its aim of combining near-term cash flow generation with longer-term growth.
It cautioned that discussions were ongoing and that there could be no certainty on final terms.
The group also announced a board change, with David Palumbo transitioning to a non-executive chairman role while remaining chairman until a successor with experience across both technology and complementary asset resources was appointed, to ensure continuity.
"Since joining Eqtec, my focus has been on sharper execution, capital discipline and commercial outcomes, and that remains unchanged," said chief executive James Parsons.
"I am confident in the medium-term potential of our gasification technology and team and in its ability to deliver scalable returns as multiple reference plants come onstream."
"Selective, capital-light exposure allows us to balance the portfolio and introduce nearer-term value inflexion points while remaining aligned with the same electrification and decarbonisation drivers."
At 1400 GMT, shares in Eqtec were up 79.82% at 0.1p.
Reporting by Josh White for Sharecast.com.