The plant, in Utah, United States, will produce the group’s biomass based fuel to client specifications and initial production is supported by offtake contracts.
READ: Active Energy’s CoalSwitch plant moves a step closer to full-commissioning after successful initial testing
It is anticipated that the plant start-up will provide commercial scale proof-of-concept to potential commercial partners, financiers', government representatives and officials.
"With the plant operational, AEG can now demonstrate the delivery of commercial quantities of CoalSwitch,” said Richard Spinks, Active Energy chief executive.
“This is clearly an inflection point in the development of our business and we are delighted to welcome a select group of parties to visit the plant this week.
“In addition to seeing the fully operational plant, the parties will receive a dedicated briefing from AEG's technical, financial and commercial teams.”
"We will arrange for many other organisations and potential partners to visit the plant over the coming weeks and months as the Group expands its production capacity in Utah and elsewhere.”
Disruptive new force?
Active Energy believes CoalSwitch is a disruptive new force in the biomass industry. The company describes its product as “a unique, high-calorific, high-bulk density, advanced biomass pellet that behaves just like coal, but with the environmental benefits of clean biomass”.
It is made from forestry waste and other industrial cellulose waste products, and, unlike generic wood pellets, CoalSwitch can be co-fired with coal in existing unmodified coal-fired power plants at any ratio. That means any ‘dirty’ coal plant operator can fulfil their environmental obligations without the need for extensive retrofitting of power station plant and handling/storage infrastructure, Active Energy added.
Spinks said: “We believe that AEG's CoalSwitch biomass fuel technology can make a significant contribution to the environment globally due to its unique qualities and ability to be a direct drop-in fuel to the power industry.
“The fact that AEG can utilise multiple types of biomass and, most importantly, forestry waste and residuals waste wood, has generated interest from a multitude of prospective partners, including governments, corporates and utilities who all recognise the unique qualities and environmental credentials of CoalSwitch."