- Queensland Pacific (QPM) enters into a collaboration agreement with German supply companies to provide capital equipment to its TECH project in QLD
- Under the deal, German suppliers Plinke, Andritz Separation and Siemens will supply a “significant proportion” of the equipment required for the TECH project
- Further, QPM says it has received receipts of financing support from two German financial institutions: Euler Herms and KfW IPEX-Bank
- The company says the total indicative and conditional debt funding expressed by interested financiers as part of its debt process exceeds $1.4 billion
- QPM shares closed 23.8 per cent higher at 13 cents on Tuesday afternoon
Queensland Pacific (QPM) has struck a collaboration agreement with three German supply companies to provide capital equipment to its Townsville Energy Chemicals Hub (TECH) project in Queensland.
Under the deal, German suppliers Plinke, Andritz Separation and Siemens will supply a “significant proportion” of the equipment required for the TECH project.
QPM Managing Director and CEO Stephen Grocott said the company had actively engaged with the suppliers during its feasibility work to ensure the equipment would meet the requirements of its TECH project.
“We have long identified that our German partners would be well-positioned to supply commercially proven equipment required for the TECH project,” Dr Grocott said.
“Formalisation of these relationships through the collaboration agreement is a clear demonstration of each company’s intentions and support for the TECH project.”
Subject to the completion of current optimisation test work, engineering, and commercial negotiations, the German suppliers will also provide construction and commissioning assistance and conduct visits to QPM plants where their equipment is in operation.
Meanwhile, QPM said it had received receipts of financing support from two German financial institutions: Euler Herms and KfW IPEX-Bank
Germany’s Export Credit Agency (ECA), Euler Hermes, has issued a letter of interest to provide a tied loan guarantee of $500 million to be tied to the equipment provided by the German suppliers.
KfW IPEX-Bank has confirmed its principal interest to lend US$250 million (A$357 million) in debt financing, to be split between the Euler Hermes guaranteed debt, and non-ECA guaranteed debt.
QPM’s debt financing progress now exceeds $1.4 billion of conditional funding support.
QPM shares closed 23.8 per cent higher at 13 cents on Tuesday afternoon.