Under the terms of the agreement, YLF - an agricultural company focused on essential oils production - will supply up to 6,500 tonnes of by-product from its waste stream to Active Energy to be processed at the company’s first commercial CoalSwitch plant in Utah, United States.
The AIM-listed firm said the product from the CoalSwitch process will then be used as a high-value soil amendment for re-introduction to YLF’s crop production cycle.
It added that initial deliveries will begin in March 2018 and the company will receive payment on a per tonne basis.
Active Energy said that this agreement marks a new revenue stream for the company and also demonstrates the flexibility and commercial value of its unique CoalSwitch process across multiple applications.
Michael Rowan, Active Energy's non-executive chairman said: “Our unique process can be applied to target specific engineered soils, which remove potentially environmentally damaging waste streams and use this as feedstock.”
He concluded: “This engineered soil becomes an environmentally responsible alternative to the use of peat moss.”