In the United States (US), Active Energy Group Plc (AEG), a UK-headed international biomass-based renewable energy and forestry management business, has announced that it has entered into an agreement with Alamac Holdings LLC (Alamac), a privately owned US entity, to acquire an industrial site in Lumberton, North Carolina (NC). The site will become the new base for all AEG's CoalSwitch operations in the US and house its first permanent production facility.
According to a statement, the site is strategically located close to AEG’s joint venture (JV) partner Georgia Renewable Power LLC (GRP) and is also in a prime lumber district in the US. It includes up to 415,000 sq ft of covered factory space and circa 151 acres of surrounding land and is being purchased for a total consideration of US$3.33 million.
We recognise the importance of Active Energy’s objective to deliver innovative second generation biomass products, that have the potential to transform the traditional power industry. This has significant implications in terms of both the environmental impact of power generation and the economic enrichment of the Lumberton area and I am delighted to be a part of these developments, said Lloyd W. Coppedge, CEO of Alamac Holdings.
Fundraising completed
Completion of the acquisition is subject to certain customary conditions which both AEG and Alamac expect to be satisfied during March 2019. To part fund the acquisition, AEG has completed fundraising of US$3 413 000 through the subscription of convertible loan notes (CLNs) by new and existing institutional investors.
We continue to make progress on delivering our first commercial CoalSwitch product to market, which is now our main focus. The acquisition of the Lumberton site is part of this strategy and I believe the Fundraise is an endorsement of our drive to prioritise near term revenue generative opportunities. I am delighted that we have received the support of our existing institutional shareholders and that Alamac wanted to take a significant part of the consideration via the CLNs, which we believe is another strong vote of confidence in our future growth strategy and our innovative CoalSwitch product, said Michael Rowan, Chief Executive, AEG.
The Lumberton site is fully permitted for operations and the permits can be transferred to AEG upon completion of the acquisition, thus reducing the time to market of the planned production of CoalSwitch. The site also includes key ancillary facilities, such as water treatment, an analysis lab, offices and IT hardware.
Lumberton gives AEG an ideal base in the heart of the lumber production region in North America and the facility is adjacent to the facility owned by our JV partner Georgia Renewable Power LLC. In addition, the site provides the foundation of our onward expansion in the region as the site benefits from proximal access to the Eastern Seaboard of the United States, ensuring AEG is connected to established export routes for sales to Europe and South East Asia. Our focus is now on installing the initial five tonne per hour CoalSwitch plant at the Lumberton site, utilising existing equipment and facilities from our existing site in Utah, together with support from our partners, Andritz Group, the international engineering group, ended Michael Rowan.
