Active Energy in various talks over future of CoalSwitch

Active Energy, a renewable energy company specialising in biomass-based solutions, said in an update on Monday that it had entered discussions with various parties regarding strategic opportunities and the potential sale of its ‘CoalSwitch’ assets.

The AIM-traded firm said it had received multiple proposals from interested parties, which the board was currently considering.

At the same time, the company said it was assessing its operations in the United States and internationally to optimise its capital resources.

Active Energy said it was confident in the potential of CoalSwitch to revolutionise the renewable biomass fuel market, catering to coal-fired power stations, heavy industries, and the existing biomass industry.

The board said it was actively exploring avenues to maximise the value of its assets, including the possibility of divesting components of the group or selling the CoalSwitch assets and associated intellectual property.

It said the CoalSwitch assets encompassed the company's original patent and trademark portfolio on the steam explosion process for fuel production, production and test data knowhow from initial activities, and relevant customer and internal test data.

Additionally, the firm held cash and cash equivalents of about $0.5m and a 4.1% shareholding in Alpha Prospects, valued at £0.68m.

Considering Active Energy’s diminishing cash reserves due to ongoing operational costs, including those related to trading on AIM, the board said it was contemplating a members voluntary liquidation if an acceptable offer for the CoalSwitch assets was not received promptly.

However, the exact returns to shareholders in such a scenario remained uncertain.

Due to limited cash resources, Active Energy said it anticipated potential delays in completing its audit for the year ended 31 December 2023, possibly extending beyond 30 June.

Failure to publish the 2023 results by then could may result in the suspension of the company's ordinary shares from trading on AIM.

At 1503 BST, shares in Active Energy Group were down 36% at 0.24p.

Reporting by Josh White for Sharecast.com.