UK-based renewable energy company Active Energy Group (AEG) has completed the acquisition of an industrial site in Lumberton, North Carolina.
The Lumberton site will serve as the new base for all AEG’s CoalSwitch’s operations in the US. The site will also include the first permanent production facility for CoalSwitch.
AEG entered a definitive agreement with a privately owned US entity Alamac Holdings earlier this month. The site, which is located near AEG’s joint venture (JV) partner Georgia Renewable Power, includes nearly 415,000ft² of covered factory space and circa 151 acres of surrounding land.
The company agreed to pay $3.3m, including a cash payment of $1.08m and the balance of $2.2m through the issuance of Series B convertible loan notes (CLNs).
Active Energy chief executive Michael Rowan said: “We continue to make progress on delivering our first commercial CoalSwitch product to market, which is now our main focus.
“The acquisition of the Lumberton Site is part of this strategy and I believe the Fundraise is an endorsement of our drive to prioritise near term revenue generative opportunities. Lumberton gives AEG an ideal base in the heart of the lumber production region in North America and the facility is adjacent to the facility owned by our JV partner Georgia Renewable Power LLC.
“In addition, the site provides the foundation of our onward expansion in the region as the site benefits from proximal access to the Eastern Seaboard of the US, ensuring AEG is connected to established export routes for sales to Europe and South East Asia.”
Last October, AEG announced its intent to form a joint venture (JV) with Georgia Renewable Power (GRP), to install CoalSwitch facilities in the US.
The CoalSwitch production facilities will produce biomass fuel for AEG at GRP power plants.