REG - Active Energy Group - First phase CoalSwitch™ combustion testing results

Active EnergyAnnouncement

31/01/2022 07:00

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RNS Number : 0564A  Active Energy Group PLC  31 January 2022

Active Energy Group Plc: AEG / Sector: Alternative Energy

 

31 January 2022

 

Active Energy Group Plc

('Active Energy', or the 'Company')

 

First phase CoalSwitch™ combustion testing results from Utah

 

Active Energy, the AIM-quoted renewable energy business focused on the
production of next generation energy pellets, is pleased to announce the
results of the first phase independent combustion testing program conducted on
CoalSwitch™ fuel in Utah, USA.

 

Highlights:

 

·      CoalSwitch™ combustion testing results demonstrate the superior
quality of the fuel over existing biomass fuels.

·      The tests delivered the following key findings:

¾   CoalSwitch™ fuel delivered to Utah had an increased heating value of
9,313 British Thermal Units per pound (BTU/lb), which represents a 12.9%
premium to traditional white pellets currently being produced for the biomass
market;

¾    the CoalSwitch™ test results show a material reduction of Ash
compared to burning 100% coal;

¾   the CoalSwitch™ test results show a significant reduction in
Nitrogen Oxide (NOx) and Sulphur Dioxide (SO(2)) emissions compared to burning
100% coal;

¾    CoalSwitch™ can be used on its own as well as co-fired with coal in
different ratios; and

¾   CoalSwitch™, both when blended and in its pure form, can be milled
in an unmodified bowl mill and burnt in existing coal-fired burners without
additional capital expenditure requirements.

·      Prospective customers have been requesting this data in order to
understand the full environmental and commercial benefits that use of
CoalSwitch™ represents.

Michael Rowan, CEO of Active Energy, said:

"The results from the first phase of the ongoing combustion testing program of
our CoalSwitch™ fuel represent an important milestone. With the assistance
of the Brigham Young University, tests were carried out on the first tranche
of CoalSwitch™ fuel which was produced from our reactors in Maine. These
tests reconfirmed the beneficial properties of CoalSwitch™ which had been
highlighted in former tests.

CoalSwitch™ continues to show its superior qualities over white pellets,
including its hydrophobic properties, burning at higher heating values and
reducing ash, nitrogen oxide and sulphur dioxide emissions. CoalSwitch™
offers a new pathway for heavy, hard-to-decarbonize industries in the US,
which are increasingly pressured to reduce emissions and pollution.
CoalSwitch™ provides a unique ability to achieve these goals without
requiring costly, complex and yet-to-be-proven mitigation technologies like
carbon capture. It would allow customers to "drop-in" our CoalSwitch™ fuel
and see immediate and meaningful reductions in emissions and air pollution.

These initial test results have met our expectations for the future of
CoalSwitch™, confirming it as an immediate co-firing solution for existing
operations utilising coal. The test results add momentum to our current
discussions with prospective long-term customers of CoalSwitch™ and
production partners both in North America and worldwide."

 

Details of the Utah testing program

 

Background and testing process

 

The CoalSwitch™ fuel was produced from the waste wood residuals at the
 operating facility in Ashland, Maine and was delivered to Utah to undergo
the first phase of the extensive testing program in Q2 2021. CoalSwitch™ was
produced using Active Energy's proprietary steam beneficiation process instead
of the existing alternate biomass production methods.

 

The primary focus of this phase of testing was to evaluate the burning and
material handling properties of CoalSwitch™. The fuel was tested through a
bowl mill, which operates at approximately 1 ton per hour, and subsequently
tested in a pulverised coal research furnace operating at 1.3 megawatt of
thermal output. The coal research furnace has a firing system and operational
representation of full-scale utility boilers.

As part of this assessment, CoalSwitch™ was tested over a one-week period
both on its own, as well as blended with Utah bituminous coal at various
ratios. CoalSwitch™ and coal were milled, with the milled fuel blends
subsequently used for combustion testing.

The testing was conducted in Utah by Brigham Young University, Rocky Mountain
Power (a subsidiary of PacifiCorp), the University of Utah, Chalmers
University of Technology and Reaction Engineering International. The program
was funded independently through Rocky Mountain Power's Sustainable
Transportation and Energy Plan (the "STEP Plan"). The STEP Plan decided to
test the fuel through the coal-fired research furnace and the program was
completed in Q4 2021. The concluding report was completed in January 2022.

 

Key results

 

The testing results are very encouraging for Active Energy and demonstrate
that CoalSwitch™ is an immediate solution for coal-fired power plants that
are seeking to reduce their emissions. The testing was completed using the
first tranche of production grade CoalSwitch™ fuel from Maine. Active Energy
expects that the results attained from this testing program will improve as
subsequent tranches of CoalSwitch™ are produced.

 

The summary of findings from the report on the testing are as follows:

 

1. Cost efficiencies identified in the milling of CoalSwitch™

 

The primary measurements of interest were the power requirements of the bowl
motor and the ability to blend both CoalSwitch™ and coal. The test results
confirm that CoalSwitch™ can be milled in an unmodified mill with only small
changes required to the mill settings. Further, there was also a material
reduction in mill power requirements when milling the CoalSwitch™ fuel
compared to the milling of pure coal or biomass blended fuels.

 

2. CoalSwitch™ has 12.9% higher heating value than white pellets

 

During combustion testing, the observed heating value of CoalSwitch™ fuel
was 9,313 BTU/lb, which represents a 12.9% premium to traditional white
pellets currently produced for the market by the Company's competitors, which
underpins the economic value of CoalSwitch™.

 

The test data also provided that with a mix of 75% coal and 25% CoalSwitch™,
the heating value was 11,807 BTU/lb, representing a 7% drop from normal coal
burning values.

 

3. Use of CoalSwitch™ reduced ash by up to 77% vs coal

 

The tests showed significant reduction of ash deposition when CoalSwitch™
was used. When used on its own, CoalSwitch™ produced 77% less ash than coal.
CoalSwitch™ / coal blends also resulted in a significant reduction of ash
deposition, with higher CoalSwitch™ ratios producing less ash.

 

4. Use of CoalSwitch™ reduced NOx emissions by 20% vs coal

 

The tests showed significant reduction of NOx emissions when CoalSwitch™ was
used. When used on its own, CoalSwitch™ generated 20% less NOx than coal.
CoalSwitch™ / coal blends also resulted in a reduction of NOx emissions,
with higher CoalSwitch™ blended ratios producing less NOx.

 

5. Use of CoalSwitch™ reduced sulphur dioxide emissions by 60% vs coal

 

The tests showed that burning pure CoalSwitch™ produced significantly less
sulphur dioxide than burning coal. Blended ratios also produced significant
reductions in sulphur dioxide emissions.

Continuing test program

The Company and Brigham Young University are planning to continue with the
testing program of CoalSwitch™ and analysing the environmental benefits of
consuming blended ratios of coal and CoalSwitch™ in existing coal-fired
power operations.

 

The results from the continued testing program will be key in expediting the
Company's goal of developing the next generation biomass fuels using
sustainable resources and securing commercial partners and prospective
customers.

 

 

Enquiries:

 

 Active Energy Group Plc              Michael Rowan (Chief Executive Officer)                                    info@aegplc.com

                                      Andrew Diamond (Chief Financial Officer)

 Allenby Capital Limited              Nick Naylor / James Reeve / Freddie Wooding (Corporate Finance)            +44 (0)20 3328 5656

 Nominated Adviser and Joint Broker

                                      Amrit Nahal (Sales and Corporate Broking)

 Panmure Gordon & Co                  John Prior / James Sinclair-Ford / Harriette Johnson (Corporate Finance)   +44 (0)20 7886 2500

 Joint Broker

                                      Hugh Rich (Corporate Broking)

 Camarco                              Gordon Poole / Tom Huddart / Emily Hall                                    aeg@camarco.co.uk

 Financial PR Adviser                                                                                            +44 (0)20 3757 4980

 

About Active Energy

 

Active Energy is a London-listed (AIM: AEG) renewable energy company that has
developed a proprietary technology which transforms low-cost biomass material
into high-value green fuel. Its patented product CoalSwitch™ is the world's
only drop-in biomass fuel that can be mixed at any ratio with coal or
completely replace coal in existing coal-fired power stations without
requiring significant plant modifications. Active Energy's immediate strategic
focus is the production and commercialisation of CoalSwitch™.

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