Active Energy have said that t has started commercial lumber production at its forest-to-energy plant in Lumberton, North Carolina, US.
“We are delighted that lumber related activities including the sawmill and wood processing operations have commenced; these are already generating revenues for AEG,” said Chief Executive Michael Rowan.
“These activities complement the business activities relating to our CoalSwitch and biomass operations, including accessing feedstock for CoalSwitch from wood residues and waste materials and accessing future customers of CoalSwitch and black pellet fuels for AEG,” he continued.
Rowan added: “We expect these lumber operations to scale up during the first half of 2020, bringing online more operational capability, including operating a double shift each day; I look forward to providing further updates regarding the expected economic benefits to AEG in due course.”
Active Energy Group (LON: AEG) plc is a London listed renewable energy company focused on traditional and second generation biomass products that have the potential to transform the traditional coal fired-power industry and develop an international forestry management business.
Shares of Active Energy spiked 8.84% to 0.48p. 11/12/19 12:36BST.
Last week, Active saw their shares surge over 30% as the firm saw progress in their Canadian operations. The firm agreed terms for the issuance of its first CoalSwitch licence agreement to RMD Environmentals.
RMS is a Canada-based forestry management and environmental engineering and consultancy business.
Today, the firm updated shareholders saying that e North Carolina Department of Environment & Natural Resources is continuing to review its application to begin commercial production at its coalswitch plant in Lumberton, US.
“Once the permits have been awarded, the company will commence construction of the reference plant to produce up to 5 tonnes per hour CoalSwitch,” Active said.
While the company awaits approval, Active said it is continuing to work on plans to construct and produce facilities for larger production at the Lumberton plant following its licence agreement with Canadian forestry firm RMD Environmentals Inc.
Under the deal, RMD will develop and manage projects using wood fibre fuel product Coalswitch in British Columbia and Alberta.
Chief Executive Michael Rowan said: “Having submitted all the relevant documentation, we are positioned to commence construction of the initial 5 tonnes per hour CoalSwitch reference plant at Lumberton once we receive the final permits. In the meantime, we’re making good progress across the business, looking to utilise the Lumberton site for complementary lumber activities and planning for the scale up to the 50 tonnes per hour CoalSwitch facility.”
In the renewables sector, yesterday saw a busy day and a few trading updates. British investment trust The Renewables Infrastructure Group announced on Tuesday that it had exchanged contracts to acquire a stake in an offshore wind project in the German North Sea.
The deal gives TRIG a c.36% equity interest in the Merkur Offshore project, which is a 396MW operational offshore wind farm.
Additionally, Renewables asset investor Greencoat Renewables PLC announced yesterday that it had exceeded expectations with an impressive sum raised in its share placing.
The firm said it had raised €125 million in a materially oversubscribed placing. Conditional on shareholder approval at the Group’s EGM, 110,619,469 Placing Shares will be issued at a price of €1.13 per unit.
Certainly, Active Energy shareholders and board will hope that the pause isn’t for too long, and the industry moves swiftly day by day.
However, shareholders should remain optimistic as the firm can expect long term benefits once clearance has been reached.