Active Energy seeks buy-out on its wood-coal biomass hybrid
UK-based biomass specialists Active Energy has had to drop plans to build its flagship project owing to an absence of funding.
Today, the company said that the board had decided that it could not raise “sufficient working capital” to get Coalswitch, a proprietary pellet made of coal and wood, off the ground and into production.
According to the firm’s website, Coalswitch reduces life-cycle emissions of coal burning by 99 per cent and can be co-fired at any blend rate with traditional coal.
The statement to the London Stock Exchange, where the group is listed on the AIM market, continued that the board has decided to speed up the process to try and spin off the Coalswitch assets.
These comprise the original patent and trademark portfolio, all production and test data information acquired from the initial testing and all relevant customer data.
Should the Board receive an acceptable offer for the CoalSwitch assets, it said, a sale is likely to constitute a “fundamental change of business” and would require the approval of shareholders at a general meeting of the company.
A successful sale is expected to result in the company becoming an AIM Rule 15 cash shell.
The market reacted poorly to the news in early morning trading today, as Active Energy’s share price fell over nine per cent.
Headquartered in London with operations in the US, Active Energy said it targets the production of materials that “have the potential to transform coal-fired power and heavy industries and the existing renewable biomass industry.”
The UK’s existing biomass industry is run predominantly by one operator, Drax. In 2021, Drax was cited as running the most polluting energy site in the UK, its power plant in North Yorkshire.
The FTSE 250-listed firm has been embroiled in public ire in recent months, owing to it securing hundreds of millions in government carbon capture contracts.
Dispute has raged about these mooted carbon capture and storage facilities, which could be built at the power plant.
Environmental campaigners have claimed that the site would end up costing the taxpayer £43bn over the next 15 years, while Drax said it will save £15bn between 2030 – 2050.