City broker Northland Capital has praised Active Energy Group PLC (LON:AEG) after the renewable energy specialist secured the financing for its first CoalSwitch plant.
Active has agreed a US$6mln, five-year, unsecured loan facility that will help it to build a 35,000 tonne per annum plant in North America.
CoalSwitch – which is what this new plant will produce – is a replacement for coal and can be burned instead of, or alongside, coal to make the power generation process more environmentally-friendly.
Because it is a ‘drop-in’ biomass fuel and a direct replacement, power stations don’t need to carry out expensive conversions to accommodate it.
“AEG has recently made significant steps towards the development of a commercial platform for its CoalSwitch technology and product,” said Northland analyst Mike Jeremy.
“Access to capital…indicates that [the company] is now one step closer to establishing CoalSwitch as a viable substitute for coal using widely-available ‘waste’ wood biomass.”