Active Energy Group (AEG) has agreed to sell its Lumberton, North Carolina site for $4.65 million (€4.1 million).
The biomass-based renewable energy company that developed CoalSwitch clean energy pellets entered into a sale and purchase agreement with Phoenix Investors for the sale of its facility. Phoenix Investors is a US-based commercial real estate firm, the core business of which is the revitalisation of former manufacturing facilities.
The funds raised by AEG in December last year have allowed it to commence work on permitting for the Ashland, Maine CoalSwitch production facility, and to complete engineering and design activities. The net proceeds from the sale of the Lumberton site, which had a net book value as of June 2021 of $4 million, will enable the company to further develop the Ashland facility.
Before the completion of the sale, expected in June, AEG will move certain CoalSwitch equipment from the Lumberton site to the Ashland facility for deployment in the continued development of CoalSwitch.
“Based on the accelerating level of enquiries from prospective customers, we need to have commercial production of CoalSwitch as soon as possible,” said Michael Rowan, AEG’s CEO.
“The strategic focus is on acquiring and developing sites in the US and Canada that give us the quickest pathway to production.
“The first priority for AEG is to begin commercial production of CoalSwitch at the Ashland facility as quickly as possible. Reinvesting proceeds from the sale of the Lumberton site into our Ashland facility allows AEG to accelerate this process.
“Commercial production at the Ashland facility is critical, not only because AEG can meet customer demand, but also because the environmental data from both the operating facility and resulting fuel will accelerate the permit process in other locations.
“Prospective commercial partners from the US Southeast are keen for AEG to develop commercial production facilities in the region and AEG will work toward this once the activities at the Ashland facility progress.
“Current feedback confirms CoalSwitch has a significant role in the transition toward the zero-carbon economy and future energy security. We look forward to delivering CoalSwitch to customers.”
Read more about AEG’s independent CoalSwitch testing and development plans in our recent exclusive feature.