Active Energy has started construction of a new production facility in North America that will help the firm commercialise its drop-in biomass fuel.
The firm says that its CoalSwitch product could revolutionize the renewable energy industry as it can be mixed at any ratio with coal, or completely replace coal in existing coal-fired power stations globally without the need for expensive retrofitting.
The new production facility represents the latest manufacturing scale-up of CoalSwitch, which was recently tested and endorsed by Rocky Mountain Power, a unit of US utility giant PacifiCorp.
According to Active Energy, Rocky Mountain’s testing proved that CoalSwitch behaves better than coal in every respect in the handling of feedstock to the power station as a drop-in replacement for coal. Rocky Mountain will conduct commercial testing of the CoalSwitch product at one of its Utah facilities as soon as production of product from the new reference plant commences.
In order to expedite construction of this 35 000 tonne per annum North American facility, Active Energy has delivered a $6 million five-year unsecured loan facility.
“This is a landmark moment for AEG,” said Richard Spinks, Chief Executive Officer of Active Energy. “The funding unlocks our ability to commercialise our revolutionary and proven CoalSwitch technology and will enable us to generate meaningful revenues within the USA, which is set to be one of our core geographic markets.
“Due to its ability to enable coal fired power stations to meet strict green regulations without the need for expensive retrofit programmes traditionally required to accommodate biomass feedstock, we believe that CoalSwitch represents a potentially ground-breaking force in the market.”