Active Energy Group PLC’ (LON:AEG) saw its shares rise today after the firm said it is to build eight manufacturing plants across Asia in a landmark agreement for its CoalSwitch product.
In late afternoon trading, AEG shares were 6.5%, or 0.13p higher at 2.05p.
California-based renewable energy group Lumino Capital will partner Advanced Biomass Solutions (ABS), AEG’s biomass affiliate, on the project and source the biomass feedstock as well as providing finance.
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Each new plant will be a standalone entity with ABS to build and run the plant and Lumino to handle sales, marketing, finance and the administration.
Total production from the plants will be 1.5mln tonnes of the CoalSwitch product each year with construction of the first plants targeted for the first half of next year.
Using wood waste
CoalSwitch is a feedstock that reduces the amount of coal used in thermal power stations, reducing harmful emissions.
It is made from waste wood that would normally be left to decompose following forestry operations such as pulp, bark, sawdust and thinnings.
This deal will transform CoalSwitch's prospects said Brian Evans-Jones, a director of both ABS and AEG .
ABS had said previously one of its plans for CoalSwitch was for it to be rolled out in Asia in places where it could source high volume feedstock.
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“Lumino is a fantastic partner with immense experience within the renewable energy sector” added Evans-Jones.
“Together, we intend to create a vertically integrated model encompassing the key components needed for the successful commercial roll-out of CoalSwitch.
“Lumino will utilise its network of finance providers, as well as source both woody biomass and long-term offtake agreements, whilst ABS will supply the technology and plant construction. “
Daniel Kim, Lumino’s managing director, added:”CoalSwitch is a game-changing biomass product that has the potential to transform the energy sector.
“We have been involved in the renewable energy sector for years, developing, constructing and financing renewable energy power plants and pellet mills across Asia. “
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