Active Energy shares soar as it receives first CoalSwitch order

The AIM-traded firm said the order was from PacifiCorp - the largest grid operator in the western United States, which serves the energy demands of 1.9 million customers.

It said CoalSwitch would be burned at PacifiCorp's Hunter Power Plant in Utah, as part of the coal and biomass co-firing demonstration being conducted by PacifiCorp.

Active Energy said it would be supplying up to 900 tonnes of biomass feedstock from its Lumberton site for delivery by 14 June 2021.

All the feedstock used for the biomass would be sourced locally within North Carolina, and processed by using residual wood, including bark, and treetops and branches.

The board said the commitment formed part of Active Energy’s strategy to produce a biomass solution including waste materials from the lumber industry.

Following its announcement on 3 December, work on the CoalSwitch plant continued to progress, with construction activity set to increase early in the new year.

Active Energy and Player Design expected the commissioning of the first CoalSwitch plant in the second quarter of 2021.

Additionally, Active Energy said it was currently in discussions with a number of other prospective utility and power customers in the United States to test the CoalSwitch fuels as soon as possible.

“This is a seminal moment for Active Energy as we deliver our first commercial product to a major US-based customer,” said chief executive officer Michael Rowan.

“We are on track with our business plan and we are working at great pace to commission the Plant and fulfil the interest for the CoalSwitch product.

“We are also pleased to confirm that the order will also be fulfilled using waste materials as a key component of the next generation biomass fuels and which will be a core value of Active Energy's future biomass goals.”

At 1453 GMT, shares in Active Energy Group were up 76.92% at 0.69p.