The two companies have signed a memorandum of understanding over the waste conversion project, but EQTEC can also obtain full ownership from Logik via the acquisition of the project's SPV.
EQTEC has paid Logik £100,000for the exclusivity arrangement, which runs until March 2021 and can be extended by mutual agreement.
The proposed purchase price for the project will be £4.6mln plus a further amount based on final planning achieved and a detailed financial model up to £5.4mln.
Under the MOU, EQTEC will act as lead developer for the project, having responsiblity for introducing potential project investors and EPC and O&M partners.
Planning permission currently exists for a waste management facility handling 182,000 tonnes of annual residual waste and an anaerobic digestion plant, which is projected to produce 2MW of biogas.
Under the current planning, 60-70% of the RDF produced at the proposed waste management facility would incur disposal and/or landfill costs.
EQTEC will seek additional planning permission to use its advanced gasification technology to reduce the environmental impact and also improve the project’s economics.
If granted, EQTEC believes the project would be capable of generating 20Mw of green electricity, enough to power 37,500 homes, and 27MW of thermal heat production.
This would generate additional revenues for the Project SPV of £16mln in gate fees, £6mln in electricity sales and up to £1.5mln in heat sales, it said.
David Palumbo, EQTEC’s chief executive, said: "The Project has the potential to provide communities and companies with a credible and commercially attractive alternative to landfill and incineration."