Active Energy links up with Lumino to commercially roll-out biomass CoalSwitch plants

Advanced Biomass Solutions (ABS), an affiliate of Active Energy, has entered into an agreement with US-based Lumino Capital for the financing, development and operation of eight CoalSwitch plants across Southeast Asia.

Active Energy is a London Stock Exchange-quoted international forestry management and biomass-based renewable energy business.

Under the terms of the vertically integrated agreement, ABS and Lumino will work together on financing, development and operation of each CoalSwitch plant.

The eight plants will be located across Vietnam, the Philippines and other Southeast Asian countries.

Each plant will be capitalised primarily by equity investments and debt financing from Lumino and a consortium of financial institutions.

The plan will be to develop, finance and construct CoalSwitch plants with a production capacity of between 20 to 30-tonnes per hour.

Lumino and its affiliates will also supply woody biomass feedstock that will be used in the plants and processed into CoalSwitch. Lumino will also source long-term off-take agreements with entities in Japan and South Korea, including two biomass plants currently under development by its parent, Solariant. 

 ‘Transformational agreement’

Brian Evans-Jones, Active Energy and ABS director, said: "We believe this is a transformational agreement for both Active Energy and ABS.  Lumino is a fantastic partner with immense experience within the renewable energy sector. Together, we intend to create a vertically integrated model encompassing the key components needed for the successful commercial roll-out of CoalSwitch. 

“Lumino will utilise its network of finance providers, as well as source both woody biomass and long-term offtake agreements, whilst ABS will supply the technology and plant construction."

ABS will be responsible for the construction and ongoing operations, management and the maintenance of each CoalSwitch plant. 

Daniel Kim, Lumino managing director, said: "We believe that CoalSwitch is a game-changing biomass product that has the potential to transform the energy sector.  We have been involved in the renewable energy sector for years, developing, constructing and financing renewable energy power plants and pellet mills across Asia. 

“We see this agreement as a terrific opportunity that works to our strengths and leverages our position and contact base. I am looking forward to working with ABS and being a part of the forthcoming commercial roll-out of CoalSwitch."

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