The transaction was carried out through Synergy Projects, a joint venture between the gasification solutions company and its Croatian project development partner Sense ESC.
It was funded by a EUR1.2mln loan provided by EQTEC that will be converted into privately placed bonds to meet local corporate requirements.
Located in the Industrial Zone, Korana in Karlovac, the site contains a decommissioned plant that originally employed an early gasification technology from a third party.
The plant couldn’t achieve the operational availability initially planned so it had to be closed.
The AIM-listed group looks to redesign and reconfigure the facility to include its EQTEC Advanced Gasification Technology.
When commissioned, it will transform locally sourced wood chips and forestry wood waste from regional forests into green electricity for the local community.
It’s forecast to generate annual underlying earnings (EBITDA) of EUR700,000.
This acquisition is in line with EQTEC’s strategy to recover decommissioned gasification plants employing other technologies. It follows the acquisition of a 1.2 MWe waste-to-energy plant in Belise, Croatia, announced last month.
EQTEC’s chief executive David Palumbo said: “In partnership with the Sense ESCO team, our Croatian Joint Venture is focused on reducing the amount of forestry waste wood biomass in the local areas in which these two projects will operate, leveraging our Advanced Gasification Technology, with the low emissions profile and high operating efficiency it offers, to generate clean energy and in locations where it is also beneficial, increasing valuable high-quality biochar.”
Shares rose 4% to 1.27p on Tuesday afternoon.