Active Energy Group has secured a further $10 million €8.2 million in funding, while also converting all existing debt to equity.
The new funding and clean balance sheet will allow the firm to accelerate the development of its CoalSwitch™ production facility in Lumberton, North Carolina.
AEG has developed technology that converts waste biomass into CoalSwitch pellets that perform in the same way as coal, but reduce emissions, particulate matter, and fly ash. It can co-fire with coal or replace up to 100% of coal in power stations without requiring plant modification.
The company’s facility in Lumberton converts locally-sourced residual biomass, including bark and treetops/branches, into CoalSwitch pellets, which burn at temperatures nearly identical to coal. Depending on the blend rate, CoalSwitch can reduce CO2 emissions and other pollutants including sulphur dioxide and nitrous oxide. Commissioning at the production facility is expected to begin in the second quarter of 2021.
AEG is already contracted to produce and deliver 900 tons of CoalSwitch for a coal/biomass co-firing demonstration being conducted by PacifiCorp at its Hunter Power Plant in Utah scheduled for June this year. PacifiCorp is a major grid operator in the Western US serving 1.9 million customers.
Michael Rowan, CEO of AEG, said: “The fundraising and the CLN Restructuring represent significant milestones for AEG and will allow AEG to progress and accelerate its business plans for CoalSwitch and the Lumberton site.
“Today, construction is underway to complete the commissioning of the five tons-per-hour reference plant in Lumberton. In the long-term, we are committed to building a business that is a global provider in the next generation of biomass solutions and services.”