Active Energy Group PLC Update on Operations at the Ashland Facility (9303L)
16 September 2021 - 4:00PM
UK Regulatory
TIDMAEG
RNS Number : 9303L
Active Energy Group PLC
16 September 2021
Active Energy Group Plc / EPIC: AEG / Sector: Alternative
Energy
16th September 2021
Active Energy Group Plc
("Active Energy", "AEG" or the "Company")
Update on Operations at the Ashland Facility
Active Energy announces an update on its CoalSwitch operations
at Ashland, Maine (the "Ashland Facility") following the conclusion
of the internal review into the cause of the failure of the reactor
that led to the suspension of production operations at the Ashland
Facility, announced on 9 August 2021.
The Ashland Facility reference plant was in operation from late
May 2021 to 5 August 2021, in accordance with the temporary permit
granted to AEG's joint venture partner, Player Design Inc ("PDI")
by the State of Maine. The reference plant validated the steam
explosion process to produce next generation biomass fuels on an
industrial scale. Production cycles, utilising residual wood
materials to create CoalSwitch pellets, allowed production
variables to be assessed providing invaluable know-how and
identifying areas where the process will be enhanced to further
improve the quality of the pellet and reduce production costs.
Independent analysis and feedback from prospective customer
testing of the CoalSwitch product produced by the Ashland Facility
indicates that the product being produced is of a superior quality
to white pellet in terms of heating value and bulk density. These
assurances give AEG significant confidence that the CoalSwitch
production process is viable at larger commercial volumes.
The internal review, co-ordinated by AEG and PDI, involved a
thorough examination of all key components of the Ashland Facility.
The review established that the primary reason for the suspension
of operations was the failure of a monitoring component which led
to an unexpected interruption in a production cycle. As a result of
this monitoring component's failure, both reactors at the Ashland
Facility are inoperable and will require replacement. All other
equipment at the Ashland Facility remains operable and are capable
of recommencing CoalSwitch production operations at any time.
AEG is examining the options to re-establish production at the
Ashland Facility as soon as practicable, subject to relevant
operating permits being granted. Suitable test reactors are
available at the Company's site at Lumberton and AEG is considering
moving and modifying these, as a temporary measure, whilst new
reactors are designed and fabricated. AEG and PDI have commenced
engineering analysis to design a larger proprietary reactor that
would be capable of accommodating production volumes of up to
70,000 tonnes of CoalSwitch per annum.
Despite the immediate production issue, AEG continues to supply
pelletised CoalSwitch samples from existing stocks held at the
Ashland Facility to allow prospective customers to test the fuel.
The Company is continuing sales and marketing efforts to secure
off-take agreements with prospective customers.
Michael Rowan, CEO of Active Energy, today commented:
"AEG has never been more confident in the prospects for
CoalSwitch and, working with PDI, there is focus to accelerate the
developments in the CoalSwitch production process and work toward
the completion of production plants capable of producing up to
70,000 tons of fuel per annum as soon as practicable.
"The initial test results from the first production cycles at
Ashland in June 2021 by the Wood Science and Technology Centre at
the University of New Brunswick, announced on 2 September 2021,
demonstrated up-to-date information on the quality of CoalSwitch
fuel itself and its superiority to existing white pellets.
"It is frustrating that the failure of the monitoring component
occurred at a time when the reference plant was increasing
production volumes on a daily basis but, notwithstanding this, AEG
and PDI were able to collect invaluable production and emissions
data, technical know-how to assist in future production plant
development, and produce sufficient volumes of CoalSwitch fuel for
prospective customer testing."
Regulatory information
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
ENDS
Enquiries
Active Energy Michael Rowan (Chief Executive info@aegplc.com
Group Plc Officer)
Andrew Diamond ( Chief Financial
Officer)
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Allenby Capital Nick Naylor / James Reeve (Corporate Office: +44
Limited Finance) (0)20 3328
NOMAD and Joint Amrit Nahal (Sales/Corporate Broking) 5656
Broker
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Panmure Gordon John Prior / Harriette Johnson Office: +44
& Co (Corporate Finance) (0)20 7886
Joint Broker Hugh Rich (Corporate Broking) 2500
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Camarco Gordon Poole / Tom Huddart / Emily aeg@camarco.co.uk
Financial PR Adviser Hall Office: +44
(0)20 3757
4980
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About Active Energy Group
Active Energy Group plc is a London listed (AIM: AEG) renewable
energy company focused on the production and development of next
generation biomass products that have the potential to transform
the traditional coal-fired power industry and existing renewable
biomass industry.
The Company has developed a proprietary technology which
transforms waste biomass material into high-value renewable fuels.
Its patented product CoalSwitch is a leading drop-in renewable fuel
that can be co-fired with coal, completely replace coal as an
alternative feedstock without requiring significant plant
modifications or replace existing biomass feedstock resources.
Active Energy Group's immediate strategic focus is the production
and commercialisation of CoalSwitch and further CoalSwitch fuel
blends that utilise other waste wood and residual materials.
CoalSwitch is a registered trademark belonging to AEG plc.
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