logo-loader
TechHardware & electrical equipment
viewActive Energy Group PLC

Active Energy Group looking to get Coalswitch cracking ASAP

"The Active Energy team has been working hard over recent weeks to implement the company's refocussed strategy and achieve revenue generation in as short a timeframe as possible," said Michael Rowan, the chief executive of Active Energy.

Coalswitch machine
AEG hopes to achieve first CoalSwitch production and sales in the first half of this year

Active Energy PLC’s (LON:AEG) has been encouraged by the “substantive nature” of discussions with potential off-take partners in Europe and Asia in recent weeks.

The renewable energy and forestry management business said the discussions have further increased its confidence in the scale of the commercial opportunities for its Coalswitch and SuperFuel technologies.

READ: Active Energy Group Plc inks US partnership with renewable power group

The company is currently performing due diligence on a covered factory space in Lumberton, North Carolina, and assuming it pulls the trigger on plans to purchase it, the group’s attention will then focus on installing the initial five tonnes per hour Coalswitch plant and generating revenues at the earliest opportunity.

The Lumberton site is fully permitted for operations and the permits can be transferred to Active Energy (AEG) upon completion of the purchase, thus reducing the time to market of the planned production of CoalSwitch.

The Lumberton Site also includes ancillary facilities, such as water treatment, an analysis lab, offices and IT hardware which AEG expect to be included in the proposed sale, thus reducing the amount of capital expenditure required for the site, AEG said.

Meanwhile, the board continues to assess longer-term international expansion opportunities, with a particular focus on Western Europe and South East Asia.

The company has received multiple expressions of interest from potential partners in Asia and the CoalSwitch technology is now being evaluated by a number of engineering, procurement and construction contractors to build CoalSwitch production facilities.

The board has received a number of approaches from a variety of industries regarding the possible application of its PeatSwitch technology, which produces a beneficiated, soil substrate product made from waste fibre.

The company's previously announced memorandum of understanding (MOU) with Young Living Farms (YLF) relating to PeatSwitch plant sales has not resulted in a definitive contract at this stage due to an internal strategic review at YLF.

On the forestry side, discussions regarding the group's MOU with Powerwood Canada continue to progress. Powerwood and AEG have commenced a process to allow financial due diligence by potential funders for the joint venture project in Alberta.

"The board sees the commercial introduction of CoalSwitch as the springboard for both product credibility and the catalyst for new prospective customers to sign for both new plants and for new off-take agreements. We have already generated considerable interest from a range of potential customers, partners and off-takers,” said Michael Rowan, the chief executive of Active Energy.

"Alongside the large-scale market introduction of CoalSwitch, we continue to advance our activities in Newfoundland following the grant of cutting permits in November 2018, with the objective of delivering cash flow in the near term.

"The AEG team is focussed on generating value for our shareholders and although there can be no guarantees, I firmly believe that the quality of our intellectual capital, our partner and customer relationships and our long term strategic focus will be reflected in excellent returns for our shareholders. This is a strategy which I believe will dominate our corporate development during the first part of 2019 as we chart a course towards achieving critical commercial milestones, revenue generation and corporate growth," Rowan declared.

Quick facts: Active Energy Group PLC

Price: 0.375 GBX

LSE:AEG
Market: LSE
Market Cap: £4.51 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Perseus Mining reports 'another excellent quarter' with production up and...

Perseus Mining Ltd's (ASX:PRU) (TSE:PRU) (FRA:P4Q) (OTCMKTS:PMNXF) Jeff Quartermaine tells Proactive it's been 'another excellent quarter' for the group. "Production's up about 3% and costs down about 7% quarter on quarter. "This is the 11th consecutive quarter that we've produced very...

7 hours, 39 minutes ago

3 min read