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AEG CoalSwitch in early talks with power plant owners, says Active Energy

Eggborough power station - one of Britain's biggest - is just one plant, which has been talking to its AEG CoalSwitch joint venture, says AIM firm Active Energy (LON:AEG).
AEG CoalSwitch in early talks with power plant owners, says Active Energy
A traditional biomass plant....

Eggborough power station - one of Britain's biggest - is just one plant that has been talking to its AEG CoalSwitch joint venture, says AIM firm Active Energy (LON:AEG).

The owners of the site in North Yorkshire have cited carbon taxes and EU emissions standards as the main reason behind their recent decision to close the plant in March next year, Active said, noting market speculation on the newly announced joint venture.

As revealed last month, timber group Active is teaming up with US firm Biomass Energy Enhancements to commercialise what it describes a “revolutionary” new manufacturing process that allows biomass to be burned in unconverted coal-fired power stations.

It reckons it could mean coal-fired power generators across the globe could choose to 'go green' - improving air quality and contributing to arresting climate change  - without being forced to close.

"Eggborough power station is just one of several power plants in Europe, North America and the Middle East with whom the AEG CoalSwitch team have been in communication regarding their new coal replacement biomass fuel; as it could potentially enable them to reverse their closure plans, save jobs, and maintain their current electricity generating capacity while complying with clean air regulations and emissions targets," said Active.

The board of AEG wished to stress that  all discussions were "at a very early stage" and that no commitments have been made to individual plant owners or operators.

Active has already said it wants to complete construction of the first high-volume CoalSwitch fuel manufacturing system by mid-2016.

Active's chief executive Richard Spinks said: "The AEG CoalSwitch team have been overwhelmed by the international interest in our unique biomass clean energy fuel since we first announced it in mid-September.

"In the past three weeks I have personally met with coal-fired power plant owners in Eastern Europe, Canada and the United States - as well as some of the world's leading manufacturers of traditional biomass pellets - and it is clear that our technology has the potential to revolutionise the entire power generation industry and greatly contribute to reducing CO2 and other harmful gaseous emissions that cause climate change."

"However, it is still early days and we have a great deal to do. In conjunction with our key manufacturing partner, Munro & Associates, we are currently moving ahead to upscale the processing system, and intend to update the market on the progress of this exercise as we achieve key milestones."

Shares in Active Energy added 4.31% on Monday to 6.05p.

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