Active Energy PLC (LON:AEG) is drawing up plans for four more CoalSwitch plants after the building process got underway on its first in North America.
The company has just drawn an initial US$2mln from a US$6mln five-year unsecured facility arranged in November with Dubai-based financier Linarus FZE to fund the building of the initial 35,000 tonne plant.
Long lead items have been ordered and Richard Spinks, Active Energy’s chief executive, said the target is to commission the plant in the third quarter of next year after which it will start work on four more.
“We are in discussions with a number of investors and partners for the roll out of up to four additional CoalSwitch production plants immediately on the heels of the first plant becoming operational: two in the USA and two in Canada.
“This will serve to de-risk investors and allow the company to achieve better terms for funding plants going forward.”
CoalSwitch technology utilises low value wood, timber, forestry and pulp mill/saw mill by-products to produce a biomass fuel alternative that can be mixed with or replace entirely coal in thermal power stations.
Through the new plant, AEG will be able to supply greater quantities of biomass and also commercial-sized samples to power plants to replace laboratory scale testing.