In the United States (US), Active Energy Group Plc (AEG), a UK-headed international biomass based renewable energy and forestry management business, has entered into a joint venture (JV) agreement with Georgia Renewable Power LLC (GRP), a US biomass power utility. Under the JV agreement, Active Energy Renewable Power LLC (AERP) has been formed to further the commercial development of AEG’s proprietary CoalSwitch “black pellet” technology and fuel into operational power plants.
According to a statement, the joint venture will install AEG’s CoalSwitch manufacturing facilities at each of GRP’s three biomass-to-energy power plant sites in North Carolina and Georgia, which combined, total around 165 MWe of generating capacity.
We are delighted to be working with the GRP team who have been instrumental in the commercialisation and adoption of biomass-to-energy power generation in south-east U.S. We believe the clear synergies between GRP’s business and ours make a compelling proposition and together we look forward to leveraging the benefits of our unique technologies to develop into new markets, said Michael Rowan, Chief Executive of Active Energy.
The first installation will be at GRP’s Lumberton power plant in North Carolina. The plant will utilise some existing facilities and equipment currently owned by AEG at its commercial demonstration site in Utah, which was officially opened in February this year. The intention is to commence work immediately with the aim to have commercial production facilities installed by the end of Q4 2018.
The installation will make use of GRP’s existing steam and drying capacity at its power plants. In addition, the JV will be able to take advantage of GRP’s existing infrastructure for feedstock procurement. The JV intends to double the production of CoalSwitch at this facility to 10 tonnes-per-hour during H1 2019.
Additional plants
GRP currently has access to fibre feedstock of up to 2 million tonnes per year, well in excess of its current internal consumption requirements. In addition, GRP has access to additional supplies of woodchips and process technology for the energy markets and is seeking with AEG through the JV to commercialise new revenue opportunities.
Following the initial installation of this CoalSwitch unit, the JV intends to build two additional facilities at each of GRP’s other biomass-to-energy power plant locations in Carnesville, Georgia and Colbert, Georgia.
Currently under construction, both of these plants are estimated to be commissioned by mid-2019, and the JV intends to install a 25 tonne-per-hour CoalSwitch facility at each site in the coming 36 months.
Additional projects
The JV also intends to work on a number of additional projects. Among other biomass fuels, the Lumberton power plant facility utilises poultry litter as a fuel source and GRP wishes to work with AEG through the JV to examine new biomass fuel opportunities using poultry litter and create LitterSwitch.
The JV is looking to further develop the CoalSwitch product to include the creation of LitterSwitch pellets, a beneficiated pelletised fuel derived from poultry litter. A research and development programme is being developed for this.
In particular, the environmental and health hazards associated with poultry litter have been well documented, and the opportunity to apply our revolutionary and proprietary technology to harness and remove the damaging characteristics of this substance and produce a carbon neutral and low emission fuel, is particularly exciting and will, I believe, have global appeal, said Michael Rowan.
Furthermore, the JV will look at the creation of additional products including fertilizers based on Peatswitch organic matrix and technology along with inert by-products from the biomass power plants and mineral-rich by-products from the CoalSwitch process.
Finally, the JV will develop a commercial market, through AEG, for high density baled dry woodchips, meeting the specifications required by the EU regulations for the import of wood products, and other biomass products such as dried bedding chips, developed by GRP.
This is an important development for Active Energy, which we believe will result in a significant increase in CoalSwitch and PeatSwitch production capacity in the US, the diversification of AEG’s activities in terms of both geography and feedstock, and additional revenue streams through biomass trading, said Michael Rowan.
The JV will use for this scope GRP’s drying facilities, effectively recovering the waste heat from the power plants and greatly reducing the carbon footprint of the production chain.
I am very pleased to have concluded the joint venture with AEG and achieve the opportunity to participate in the commercialisation of both the CoalSwitch and PeatSwitch programmes. I believe that the JV has the potential to make a significant impact both in the US and internationally as commercial quantities of both CoalSwitch and PeatSwitch become available. The programme for research and development into LitterSwitch also could provide tremendous market opportunities, said Dave Schafer, Chief Operating Officer of GRP.
