TIDMAEG
RNS Number : 3610R
Active Energy Group PLC
21 September 2017
Active Energy Group Plc / EPIC: AEG / Sector: Alternative
Energy
21 September 2017
Active Energy Group Plc ('Active Energy' or 'the Group')
Agreement with Lumino Capital LLC for the Commercial Roll-Out of
Revolutionary Biomass CoalSwitch(TM) Plants
Active Energy, the London quoted international forestry
management and biomass based renewable energy business, is pleased
to announce that its affiliate company, Advanced Biomass Solutions
Plc ('ABS') has entered into an agreement with California based
Lumino Capital LLC ('Lumino') for the financing, development and
operation of eight CoalSwitch(TM) Plants across South East Asia
(the 'Agreement').
Overview
-- Vertically integrated agreement to procure finance, develop
and operate an initial eight CoalSwitch(TM) Plants located in
Vietnam, the Philippines and other South East Asian countries
-- Lumino will raise finance as well as source the supply of
woody biomass feedstock and appropriate offtake agreements with
potential customers and end-users throughout Asia
-- Lumino is a subsidiary of global financial institution
Solariant Capital LLC ('Solariant') and has a proven track record
of developing, constructing, financing and generating utility-style
renewable energy projects
-- The plan is to develop, finance and construct CoalSwitch(TM)
plants, each with production capacity of between 20 to 30-tonnes
per hour
-- Total production is estimated to be in the region of 1.5
million tonnes of CoalSwitch(TM) per annum from the initial eight
plants
-- Construction of the first CoalSwitch(TM) plants are targeted for H1 2018
-- The Agreement represents the first commercial endorsement of
CoalSwitch(TM) and the parties believe it will transform the use of
this type of biomass in the energy sector
-- The Agreement increases the profile of CoalSwitch(TM) as a
unique, high-calorific value advanced biomass pellet suitable for
use as a drop-in replacement for coal in coal-fired power
stations
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(TM). 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. The Agreement
underpins the product's immense potential as a biomass fuel of the
future and we look forward to building a partnership that will
dramatically increase the global reach of CoalSwitch(TM)."
Daniel Kim, Lumino Managing Director, said, "We believe that
CoalSwitch(TM) 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(TM)."
Key terms of the Agreement
Under the terms of the Agreement, which is non-exclusive, ABS
and Lumino will cooperate with each other regarding the financing,
development and operation of each CoalSwitch(TM) plant. Each plant
will be housed in a new legal entity (the "New Legal Entities") and
capitalised primarily by equity investments and debt financing from
Lumino and a consortium of financial institutions Lumino has been
working closely with.
ABS will enter into a Construction Management and Services
Agreement with each New Legal Entity and will be responsible for
the construction and ongoing operations, the management and the
maintenance of the CoalSwitch(TM) plants. Lumino will enter into a
Management Services Agreement with each New Legal Entity, under
which it shall provide sales, financial management and
administrative services for each CoalSwitch(TM) plant.
Importantly, Lumino and its affiliates will also supply woody
biomass feedstock that will be used in the plants and processed
into CoalSwitch(TM). 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.
About CoalSwitch(TM)
CoalSwitch(TM) is the world's first direct drop-in replacement
biomass fuel with the ability to transform the coal energy dynamic.
Its unique qualities 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. Unlike almost all biomass based
pellets, it does not have to use high-quality wood but can instead
utilise low-cost waste material which translates into significant
economic benefits. CoalSwitch(TM) has a unique solution to enable
coal-fired power plants to continue operating at acceptable
environmental standards. To facilitate the expansion, ABS is
establishing operations in the Americas, Europe and Asia and has
representation in those areas in terms of business development and
technical support.
About Lumino and Solariant
Lumino is a wholly owned subsidiary of Solariant Capital LLC and
is mandated by institutional investors to source and structure
alternative investment projects including infrastructure
investments, aircraft assets and real estate investments globally.
Lumino is actively developing and financing several renewable
energy projects throughout Asia.
The Solariant Companies are comprised of multiple entities in
the United States, Japan and South East Asia. Together they
coordinate the development, construction, financing and operation
of utility scale renewable energy projects. As a comprehensive
renewable energy developer, they connect local partners,
stakeholders and contractors with global investors to design and
implement innovative green energy projects. Its projects not only
provide exceptional investment opportunities but also deliver
environmental, social and economic benefits. Solariant's completed
projects include a $195 million photovoltaic ("PV") power plant
with 41.3 MWp capacity and their current development and financing
pipeline includes multiple utility scale PV and biomass power plant
projects in Japan.
**ENDS**
Enquiries & Further Information:
Website LinkedIn
---------------------- --------------------------------------
www.active-energy.com www.linkedin.com/company/activeenergy
www.abs-plc.com
---------------------- --------------------------------------
Enquiries
-----------------------------------------------------------------------------
Active Energy Michael Rowan michael.rowan@aegplc.com
Group Plc Non-Executive Chairman
------------------- ------------------------- -----------------------------
Richard Spinks richard.spinks@aegplc.com
Chief Executive Officer
------------------- ------------------------- -----------------------------
Brian Evans-Jones brian.evans-jones@aegplc.com
Chief Financial Officer
------------------- ------------------------- -----------------------------
Northland Capital Patrick Claridge/David Office: +44 (0)20
Partners Limited Hignell/Gerry Beaney 3861 6625
Nominated Adviser (Corporate Finance)
& Broker John Howes/Rob Rees
(Sales & Broking)
------------------- ------------------------- -----------------------------
St Brides Partners Isabel de Salis/Megan info@stbridespartners.co.uk
Financial PR Dennison Office: +44 (0)
Adviser 20 7236 1177
------------------- ------------------------- -----------------------------
About Active Energy Group
Active Energy Group Plc (AIM: AEG.L) is a London Stock
Exchange-listed international renewable energy business based upon
forestry assets. Its model is focussed on capturing the entire
forestry value chain through sourcing, utilising and
commercialising assets, and setting a new standard in the
sustainable management and optimisation of timber resources. The
Company is led by a highly technical and commercial team with the
experience to execute its defined growth strategy and build its
visibility, primarily as a London-listed timber opportunity with a
revolutionary biomass fuel technology. It has two affiliate
companies formed being:
-- Advanced Biomass Solutions Plc (www.abs-plc.com), which is
commercialising a revolutionary biomass coal replacement fuel,
CoalSwitch(TM); and
-- Timberlands International Ltd, a sustainable international forestry management business.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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