- Waste gasification technology group Eqtec said severe forest fires in California had delayed planned financing for a biomass project in the US state.

Eqtec had in June agreed to acquire a 20% stake in the North Fork Community Power, which is building the 2 megawatt plant and includes Phoenix Biomass Energy as a major shareholder.

North Fork Community Power had been granted permission to issue tax-exempt bonds totalling $9.3m and non-tax-exempt bonds totalling $5.5m that would help the project reach financial close.

'Due diligence being conducted by potential subscribers for the bonds and the finalisation of legal documentation has been ongoing for several weeks,' Eqtech said.

'The company initially expected the process for the issue of the bonds, which includes the sale of tax credits awarded by the State of California attaching to the bonds, would complete towards the end of October 2019.'

'However, the situation in California, where forest fires have continued to cause disruption, has unfortunately meant that it has taken longer than expected to complete this process.'

To potentially accelerate the closing of financing, Eqtec and Phoenix Biomass Energy had agreed a path to financial close with the potential investors in the bonds, which did not require the sale of the tax credits.

'The legal documentation to finalise the subscription for the bonds is currently being reviewed by all relevant parties and the company expects financial close to now take place before the end of 2019,' it said.

'The company will update the market in due course.'

At 2:22pm: [LON:EQT] Eqtec Plc Ord Eur0.001 share price was -0.01p at 0.11p

Story provided by