Active Energy (AEG, ATGVF), the international biomass based renewable energy business, announces an update on the progress of the construction of the CoalSwitch® manufacturing facility at Ashland, Maine (the "Ashland Facility").
Active Energy has been informed that construction of the Ashland Facility will not be completed, and the Ashland Facility will not be ready to commence production, before the end of Q3 2023. It has been confirmed that the delay in completion of construction is due to delays in receipt of key components and associated equipment. Operations at the Ashland Facility and production of CoalSwitch® are now expected to commence in November. Accordingly, Active Energy will not have CoalSwitch® fuel available for delivery to its potential customers during September 2023.
In recent months, Active Energy's sales team has initiated a broad range of active discussions worldwide with high quality future customers across several industries for CoalSwitch®. The Board is pleased with the accelerating progress of these discussions, which consistently confirm the premium properties of CoalSwitch® fuel and which provide strong evidence that, once production commences, there will be significant market demand for the fuel.
Active Energy will be announcing its interim results for the 6 months ended 30 June 2023 later in September 2023 and, as part of the results announcement, will provide an update on the sales strategy, together with an update on the progress toward CoalSwitch® fuel production.
Michael Rowan, CEO of Active Energy, commented:
"The delay in completion of the Ashland Facility is obviously disappointing news for the CoalSwitch® program. Nonetheless, despite the production delay, we continue to be actively engaged with an increasing number of potential customers for CoalSwitch® and the current level of engagement confirms the future commercial opportunities for the fuel. I look forward to updating shareholders in the announcement of our interim results later in the month."
