Active Energy Group PLC (AIM:AEG, OTCQB:ATGVF) said it has created a new “roadmap” for its CoalSwitch biomass fuel as potential customers remain eager for first production from its partner facility in the US.
Reporting results for the first six months of 2023, the company acknowledged that its main near-term milestone is the commissioning of the US facility in Ashland, Maine, but with a management team that was expanded during the period it has been developing new production partnerships in the US and internationally with the aim to expand CoalSwitch production volumes.
Changes to the US political environment, notably including approval of the Inflation Reduction Act, have resulted in it receiving increasing enquiries about CoalSwitch from potential customers looking to reduce emissions for heavy industries that have found it hard to decarbonize, it said.
Using wood remnants and forestry residuals, CoalSwitch is a 'black' biomass pellet designed to overcome the limitations of the 'white' pellets that currently act as the current main biomass feedstock: significantly lower moisture content, improved energy density and enhanced transport and storage logistics.
Ashland, where Player Design Inc (PDI) is the engineering partner, received construction and operation permits in May, but earlier this month PDI pushed back the date of first production to November due to delayed delivery of components.
Chief executive Michael Rowan said despite the recent confirmation by PDI of the delays in completion of construction, his new executive team “has already developed a new and expanded technology roadmap designed to create new opportunities for CoalSwitch fuel.
“Specifically, the roadmap includes modifications and upgrades to the existing proven technology as well as the addition of new technologies that will improve efficiencies, create new product offerings, and expand the depth and breadth of the clean carbon products that Active Energy could produce to meet customer needs. The creation of this additional IP will also open up new opportunities to partner with industry leaders worldwide for future CoalSwitch production.”
Interim results showed the AIM-listed company had a net cash position of US$1.2 million at the end of June, compared to US$2.6 million at the end of December.
Operating cash outflows of US$1.2 million were down from US$1.4 million a year earlier, as the group said it was looking to reduce expenditure and preserve available cash resources.
As it awaits first production and sales, the company reported an operating loss from continuing operations of US$1.6 million for the period, compared to US$1.3 million last time.