AEG acquires 100% ownership of Lumberton, North Carolina biomass facility
The project was previously operated through a joint venture with Renewable Logistics Systems (RLS). According to AEG, the reason behind this acquisition is to improve overall efficiency at Lumberton, so that it can optimise existing revenue streams and boost profitability.
Sawmill operations commenced at Lumberton in late 2019 and despite current market conditions, the business is still active. Current sawmill activities at the site focus on domestic sales to US customers for rail ties and board feet, as well as saw log exports to South East Asia. AEG intends to continue all its lumber activities and in the medium term, focus on boosting production and additional capital expenditure, including installing additional sawmill capacity, adjacent to the existing operations and the forthcoming CoalSwitchTM facility,
All activities at the Lumberton site generate low-value waste products, which will be used as feedstock for the production of CoalSwitch and other black pellet fuels. The use of these feedstocks will help AEG turn the facility into a carbon-neutral site for all lumber activities and biomass production facilities.
"I am delighted to announce this value accretive transaction," said AEG CEO Michael Rowan. "AEG will become the 100% owner and operator of the existing sawmill and saw log export activities at Lumberton.
"The initial joint venture with RLS was an important milestone and with their invaluable assistance, operations have commenced at Lumberton. These existing operations are already generating revenues for AEG and with the team, headed by Roger Richardson Jr, we believe this transaction will provide a solid foundation for the group's future growth at Lumberton.
"The transaction will further complement our existing CoalSwitch and black pellet fuel business activities, generating additional customer access and greater market presence in North Carolina to ensure AEG benefits from low-cost feedstock within the region."