Active Energy raises £1m in funding for ‘revolutionary’ biomass technology
London based Active Energy has raised £1 million through the issue of 33,333,333 new ordinary shares of 1p each at a price of 3p per share, according to an announcement from the company.
The net proceeds with be used to fund the execution phase of Active Energy’s business plan, which aims to develop forestry management operations and commercialise the company’s biomass drop in coal replacement fuel.
Advanced Biomass Solutions, a business unit of Active Energy, claims to have developed the world’s first direct drop-in replacement biomass fuel, CoalSwitch. According to the company, CoalSwitch’s properties allow the fuel to be directly mixed in any ratio or completely replace coal in existing unmodified coal-fired power stations, negating the need for expensive retrofitting or avoiding complete plant closure.
In addition, Active Energy’s Timberlands International business unit delivers forestry asset management and development services.
The latest fundraising forms part of Active Energy’s plans for a global commercial roll out of CoalSwitch. A number of recent successes for the fungible fuel include successful testing of the first CoalSwitch plant, in Utah, and the technical validation to permit commercial production in Poland of a new blended “SuperFuel” product that blends CoalSwitch technology with reclaimed Polish coal fines.
“We were delighted with the positive response to the Placing as existing shareholders and stakeholders recognise the importance to Active Energy of the forestry business in Canada and the significant commercial potential of CoalSwitch and its derivative products. We are making progress across the Group as the plans implemented over the last 12 months are coming to fruition,” said Active Energy chief executive Michael Rowan.
“We remain highly positive about the future of our product portfolio and the transformational effect which the Group believes this will have on the market for biomass power generation. I’d like to thank those existing shareholders who have demonstrated their continued support for Active Energy by participating in the Placing.”