Active Energy Group PLC (AIM:AEG, OTCQB:ATGVF) is taking decisive steps to expand its network of production and engineering partners across the United States.
This strategic move, aimed at accelerating the company's ability to meet the growing demand for its CoalSwitch fuel, has been announced amidst ongoing challenges at its Ashland, Maine facility.
The operation, developed by Player Design Inc (PDI), has faced construction and engineering delays, missing its target to become operational by the end of this month.
The latest estimates from PDI suggest that the facility might only be fully functional by the end of this quarter, with the possibility of starting production in the first quarter of 2024.
These delays have been a source of disappointment for green energy specialist Active, and its customers, especially considering the firm orders placed for CoalSwitch fuel. These agreements were based on PDI's commitment to deliver by the end of November.
With the Ashland facility 12 months behind its fuel production schedule, Active Energy's board has expressed a lack of confidence in PDI's time estimates for the delivery of CoalSwitch fuel.
So, under its new US management team, it is diversifying its production capabilities to ensure a more reliable supply chain and to cater to a variety of complementary uses.
"We are frustrated that the Ashland facility has not met the time deadlines, previously agreed with PDI, but we remain invigorated from the positive feedback that our new US management team is receiving to establish alternative production centres elsewhere in the US with alternative production and engineering partners," said Active Energy chief executive Michael Rowan.
"With the immediate opportunities before Active Energy for CoalSwitch sales, I am confident in the future for the company's business. We will update shareholders as soon as possible with these plans and PDI's latest updates from the Ashland facility."
The news was greeted with a knee-jerk response from market-makers, who marked the stock down 1.88p to 2.25p.