Active Energy to switch-on Utah coal alternative plant

The AIM-traded firm explained that the plant would be fully operational this week, and would produce its biomass fuel product CoalSwitch in accordance with client specifications.

Once produced, the CoalSwitch would be prepared for delivery under the initial offtake agreements already in place.

The company said it would also be taking the opportunity to demonstrate, for the first time at full commercial scale, the plant's capabilities to potential commercial partners, financiers, government representatives and officials.

Each of those parties had reportedly indicated “strong interest” in working with Active Energy to commercialise CoalSwitch in various global markets.

The Active Energy board said it believed CoalSwitch represented a “disruptive force” in the global biomass industry.

“It is a unique, high-calorific, high-bulk density, advanced biomass pellet that behaves just like coal, albeit with all the environmental benefits of clean biomass,” the board said in its statement.

“CoalSwitch is produced primarily from forestry waste and other industrial cellulose waste products.”

The company said that, unlike the current ubiquitous white pellets and other advanced pellets, CoalSwitch could be co-fired with coal in existing unmodified coal-fired power plants at any ratio up to 100%, allowing 'dirty' plant operators to fulfil their environmental obligations without the need for extensive retrofitting of power station plant and handling/storage infrastructure, and the associated costs and disruption.

“With the plant operational, Active Energy Group can now demonstrate the delivery of commercial quantities of CoalSwitch,” said CEO Richard Spinks.

“This is clearly an inflection point in the development of our business and we are delighted to welcome a select group of parties to visit the plant this week.

“In addition to seeing the fully operational plant, the parties will receive a dedicated briefing from AEG's technical, financial and commercial teams.”

Spinks said the company would arrange for “many other” organisations and potential partners to visit the plant over the coming weeks and months, as the group expanded its production capacity in Utah and elsewhere.

“We believe that AEG's CoalSwitch™ biomass fuel technology can make a significant contribution to the environment globally due to its unique qualities and ability to be a direct drop-in fuel to the power industry.

“The fact that AEG can utilise multiple types of biomass and, most importantly, forestry waste and residuals waste wood, has generated interest from a multitude of prospective partners, including governments, corporates and utilities who all recognise the unique qualities and environmental credentials of CoalSwitch,” Spinks added.