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Active Energy raises £1.75mln to help accelerate rollout of CoalSwitch biomass fuel

“The support from new and existing shareholders for our roll out strategy, which we want to accelerate due to the high levels of interest we are receiving, is a great endorsement”
wood chips
CoalSwitch is a biomass fuel made from waste wood that would normally be left to decompose following forestry operations

Renewable energy specialist Active Energy Group PLC (LON:AEG) has raised £1.75mln as it looks to accelerate the international commercial roll out of its CoalSwitch biomass fuel.

The AIM-quoted company said it is continuing to make “significant progress” in the commercialisation of CoalSwitch – a type of fuel made from waste wood.

READ: Active Energy boosted by Coalswitch partnership

Active is issuing 83.3mln new shares at 2.1p apiece to build on the momentum already generated with the product. Some of the cash will also be used for working capital.

Game-changer

"CoalSwitch is a game-changing biomass product that we believe has the potential to transform the energy sector,” said non-executive chairman Michael Rowan.

“The support from new and existing shareholders for our roll out strategy, which we want to accelerate due to the high levels of interest we are receiving, is a great endorsement.

“We believe this is a transformational period for the Group. We have a robust outlook and exciting market opportunities are emerging for both ABS and Timberlands.”

Recent ‘huge commercial endorsement’

CoalSwitch recently received a major leg-up through a deal with California-based renewable energy group Lumino Capital to build eight plants across Asia.

Advanced Biomass Solutions (ABS), AEG’s biomass affiliate, will construct and run the plants while Lumino will source the biomass feedstock as well as providing finance.

READ: Active Energy and Lumino to build CoalSwitchPlants in Asia

Each new plant will be a standalone entity with total production from the plants to be 1.5mln tonnes of the CoalSwitch product each year. Construction of the first plants targeted for the first half of next year.

Still waiting on timber licence in Newfoundland

There was also a quick word on AEG’s Timberlands International affiliate.

Earlier this month, the company said it had submitted all final documents for a Crown Timber Licence and Forestry Management Agreements on the Forestry Management Districts 17 and 18.

It is still waiting on feedback from the Ministry of Fisheries and Land Resources.

View full AEG profile View Profile

Active Energy Group PLC Timeline

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