Active energy sells Lumberton site to help fund Ashland facility

31st Mar 2022 09:51

(Sharecast News) - Renewable energy business Active Energy has agreed to dispose of its Lumberton site in North Carolina to Phoenix Investors for $4.65m, before expenses.

Active Energy said on Thursday that funds raised in December 2021 had allowed it to commence work on permitting for its Ashland Facility and to complete engineering and design activities, while the net proceeds from the Lumberton site will allow the company to further development of the new CoalSwitch production facility in Ashland, Maine.

The AIM-listed firm said the Lumberton sale was subject to a 75-day due diligence and closing period, with closing of the transaction and receipt of sale proceeds expected in June.

Prior to the completion of the sale, Active Energy will move certain CoalSwitch equipment from the Lumberton Site to the Ashland Facility for deployment in the continued development of the Ashland plant.

Chief executive Michael Rowan said: "The first priority for AEG is to begin commercial production of CoalSwitch at the Ashland Facility as quickly as possible. Reinvesting proceeds from the sale of the Lumberton Site into our Ashland Facility allows AEG to accelerate this process.

"Commercial production at the Ashland Facility is critical not only because AEG can meet customer demand, but also because the environmental data from both the operating facility and resulting fuel will accelerate the permit process in other locations."

As of 0950 GMT, Active Energy shares were up 8.12% at 0.17p.