Active Energy boosted by CoalSwitch partnership
Active Energy Group PLC’s (LON:AEG) CoalSwitch product has received a major leg-up through a deal with California-based renewable energy group Lumino Capital to build eight plants across Asia.
Advanced Biomass Solutions (ABS), AEG’s biomass affiliate, will construct and run the plants while Lumino will source the biomass feedstock as well as providing finance.
READ: Active Energy looks forward to “highly active period”
Each new plant will be a standalone entity with total production from the plants to be 1.5mln tonnes of the CoalSwitch product each year with construction of the first plants targeted for the first half of next year.
This deal will transform CoalSwitch's prospects said Brian Evans-Jones, a director of both ABS and AEG .
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“Lumino is a fantastic partner with immense experience within the renewable energy sector” he added.
“Lumino will utilise its network of finance providers, as well as source both woody biomass and long-term offtake agreements, whilst ABS will supply the technology and plant construction. “
Two separate affiliate companies
Advanced Biomass Solutions (ABS) is one of two affiliates set up in a recent reorganisation.
ABS holds all of the CoalSwitch and all future projects related to the group’s biomass coal replacement technology.
The other affiliate, Timberlands, will house the timberland assets controlled by Active, as well as any future projects which the company might acquire further down the line.
How CoalSwitch Works
The CoalSwitch product is made from waste wood which would normally be left to decompose following forestry operations.
This includes pulp and saw mill by-products such as bark, sawdust and thinnings, and wood which is over-age, under-quality, blow-down, beetle-kill, forest-fire damaged, or industrial waste.
CoalSwitch will be rolled out where AEG can source high volume feedstock. Research, development and testing have taken place over the past two years with the help of the University of Utah, which has included both burn and handling tests.
The Timberlands division has a joint venture with three native Métis Settlements of Alberta, Canada, to commercialise more than 300,000 hectares (around 750,000 acres) of assets owned by themabd recently was awarded a preliminary forestry management with the Province of Newfoundland.
Active Energy’s chairman, Michael Rowan, told investors: “ABS and Timberlands represent two highly compelling business opportunities, which we believe are capable of establishing important new franchises in each of their existing industry sectors.
Ukraine up for sale
Active Energy Group PLC (LON:AEG) has put its WoodFibre operations in Ukraine up for sale as part of the shake-up of its structure to focus on CoalSwitch and forestry management.
A bid for the division looks likely to come from Active’s now ex-chief operating officer Matteo Girlanda, who has resigned from the role in order to present an offer to the company and avoid any conflicts of interest.