Active Energy Group (AEG) entered into a joint venture agreement with Biomass Energy Enhancements LLC (BEE), located in Utah (U.S). The JV named AEG CoalSwitch is established to exclusively commercialize a revolutionary new clean energy biomass fuel manufacturing process.
AEG CoalSwitch Limited will be incorporated in the United Kingdom, and will hold the global intellectual property rights for the fuel manufacturing process, for which sixteen “greenfield” technology patent applications have already been filed. AEG has a majority 51% equity interest stake in the JV.
The new biomass fuel processing system, which BEE has been developing for the past seven years, can be potentially a game-changer for the global power generation industry. AEG explains, that for the first time, it enables biomass fuel to be utilised in traditional coal-fired power plants as a direct replacement for coal. Biomass can be also mixed with coal in co-firing operations without requiring plant owners or operators to invest in hugely expensive and time-consuming furnace, handling and storage modifications.
The process can also be utilized on previously unusable or economically unviable waste timber, contaminated or redundant industrial residue (sawdust, demolition and construction materials) as well as chemically-treated wood (railway sleepers or ties).
The finished fuel, which can be delivered in a range of different compacted formats (pellets, granules, briquettes or bales), contains similar thermal and friability characteristics to coal, enabling it to immediately be used in existing coal-fired power stations without costly retro-fitting, reconstruction or output losses. AEG informs that, it can be handled and processed at power stations utilizing the same equipment currently used to handle and prepare coal.
The new fuel processing system, is optimized for industrial-scale production by Munro & Associates, the world-renowned Michigan-based engineering and manufacturing consultancy.
The AEG CoalSwitch team has already commenced negotiations with leading investment funds to raise the capital required to roll out its ‘build-own-operate-toll’ business model, under which the company intends to construct a
network of advanced de-mountable fuel manufacturing facilities close to large-scale Biomass raw material sources, including forests, sawmills and agricultural/industrial waste sites.
About Active Energy Group:
The company is London Stock Exchange AIM-listed international supplier of industrial wood chip and timber, Biomass for Energy (BFE) fuel products, and forestry asset development services. The company has several operational set-ups in different segments: in Ukraine, Canada, the U.K and the U.S. It is the largest producer and exporter of processed wood products (in the form of wood chip) in Ukraine. In 2014 it reported revenues of USD 17.395 million.