Active Energy Group PLC (LON:AEG) has bought a site in North Carolina to be the hub of its new Coalswitch business.
The Lumberton site is close to joint venture partner Georgia Renewable Power and comprises up to 415,000 sq ft of factory space and 151 acres of surrounding land.
AEG will pay vendor Alamac US$3.3mln (£2.5mln) to be funded by a US$3.41mln convertible loan note. The Lumberton site is fully permitted for operations.
Michael Rowan, AEG’s chief executive, said he was delighted by the support of existing institutional shareholders and also that Alamac wanted to take a significant part of the consideration via the CLNs.
"Lumberton gives AEG an ideal base in the heart of the lumber production region in North America and the facility is adjacent to the facility owned by our JV partner Georgia Renewable.
“Our focus is now on installing the initial five tonne per hour CoalSwitch™ plant at the Lumberton Site, utilising existing equipment and facilities from our existing site in Utah.”
CoalSwitch is made from waste wood normally left to decompose following forestry operations.
This includes pulp and sawmill by-products such as bark, sawdust and thinnings, and wood which is over-age, under-quality, blow-down, beetle-kill, forest-fire damaged, or industrial waste.
The aim is to roll CoalSwitch out where AEG can source high volume feedstock.