Forestry management company Active Energy Group PLC (LON:AEG) has successfully completed the initial testing of its five tonne per hour CoalSwitch biomass fuel plant in Utah.
The initial results were as the company had expected and proves the technology is scalable to full commercial production, AEG said.
READ: Active Energy welcomes support from Governor of Utah for CoalSwitch
The plant is now undergoing full commissioning which Active expects to be completed within the next few weeks or so.
That will then allow the AIM-quoted group to deliver commercial quantities of its CoalSwitch product – a type of fuel made from waste wood that would normally be left to decompose following forestry operations.
It can be mixed in any ratio with coal fines or completely replace the fossil fuel in existing coal-fired power stations without the need for an expensive retrofit.
The next stage for Active and its Advanced Biomass Solutions subsidiary will be to complete commercial orders for CoalSwitch, including the first order to a full-scale, coal-fired power plant in Utah.
Governments interested in CoalSwitch
“We are now entering the next phase of our development as we produce and deliver commercial quantities of production and receive first revenues from CoalSwitch,” said non-executive chairman Michael Rowan.
“These are exciting times and we have already received much interest from governments and corporates alike due to CoalSwitch's unique qualities and ability to utilise all types of cellulosic biomass (including the lowest quality forestry waste and residuals, waste wood, and other by-products from the global forestry industry) and to blend with reclaimed coal fines or burn as a standalone coal replacement.
“The group is now establishing its environmental credentials and is ready to work with governments and corporations in the near future.”
In afternoon trading, Active Energy shares were 2.2%, or 0.05p higher at 2.35p.
In a note to clients, analysts at ‘house’ broker Northland Capital, noted: “Completion of this initial test phase takes AEG’s Advanced Biomass Solutions operation a step closer to commercial-scale deployment of its CoalSwitch™ substitute for coal in power generation.”
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