Hargreaves Lansdown

Active Energy signs two lease agreements at Lumberton site

Wed 26 June 2019 09:47 | A A A

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(Sharecast News) - Biomass-focussed renewable energy company Active Energy has signed two lease agreements at its recently-acquired commercial plant in Lumberton, North Carolina, it announced on Wednesday.

The AIM-traded firm said a lease agreement had been signed with Tencate Protective Fabrics, which was an existing tenant at the Lumberton site, including an agreed increase in rental income.

It said the second lease agreement was agreed with Renewable Logistics Systems, including land within the Lumberton site to be used for saw logging and wood processing, to complement the business activities relating to the company's 'CoalSwitch' and biomass operations.

The board said the lease agreements provided the company with an immediate source of revenue, as it advanced its CoalSwitch and biomass operations at Lumberton.

It said the construction of the five-tonne-per-hour CoalSwitch plant would commence imminently.

"Our intention for the Lumberton dite was to create a strategic hub to house the first permanent CoalSwitch production facility, in addition to generating other incremental sources of revenue for Active Energy, whilst delivering a positive impact on the local economy," said chief executive officer Michael Rowan.

"These lease agreements not only demonstrate how the company is committed to supporting local business but also provide AEG with a valued source of revenue that will assist in the future development of the Lumberton site.

"Notably, the agreement with RLS enables AEG to commence a saw logging operation at the Lumberton site and presents additional complementary opportunities to the company."

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