Active Energy PLC (LON:AEG) shares jumped on Wednesday after the biomass firm revealed that the test reactors to produce its proprietary CoalSwitch product have now arrived at its recently acquired commercial plant in Lumberton, North Carolina, and installation has commenced.
The AIM-listed renewable energy business pointed out that the Lumberton site will serve as its first permanent commercial production facility and the primary base for all of the company's CoalSwitch operations in the US.
It added that the transfer of all the equipment from the company's Utah site is targeted to be completed within eight weeks, with closure of the Utah site expected by the end of May 2019.
The Lumberton Site includes up to 415,000 sq. ft of covered factory space and circa 151 acres of surrounding land, strategically located adjacent to AEG's joint venture partner Georgia Renewable Power LLC and in prime lumber districts from which AEG will secure feedstock for its biomass-based fuel that utilises low-value forestry and agricultural residues.
Michael Rowan, AEG’s CEO of AEG, said: “The Project is ideally located in the heart of the lumber production region in North America and we are confident that its size will enable the expansion of the initial CoalSwitch plant via the construction of additional CoalSwitch production facilities, as the Company targets capacity of up to 400,000 tonnes per annum over the next 2 years.”
He added: "The scale of the Project, its existing components and the infrastructure will allow us to continue to develop additional renewable fuels based on blending the original CoalSwitch technology with animal and agricultural waste. We believe this will be attractive to potential partners who want to improve their environmental credentials."
In early afternoon trading, shares in AEG were 11.4% higher at 0.58p.
AEG shares gained on Tuesday after news it had been awarded a US$500,000 renovation grant to help build its new manufacturing site in Lumberton, North Carolina.
The grant came after the North Carolina Rural Infrastructure Authority (NCRIA) voted to support the project last week.