(Alliance News) - Active Energy Group PLC on Wednesday said it has signed two lease agreements at its recently acquired commercial plant in Lumberton, North Carolina.
The renewable energy company said the leases were signed with TenCate Protective Fabrics, an existing tenant at the Lumberton site, and Renewable Logistics Systems LLC.
TenCate, an industrial safety fabrics provider, has agreed for an annual rental sum of USD204,000. The lease agreement is for two years, Active Energy said, and it will automatically renew for a further 12-month period unless written notice is provided within 90 days.
Meanwhile, a three-year lease was signed with Renewable Logistics - a supplier of saw logs, pulpwood and wood chips - which will formally commence in mid-July. Active Energy said Renewable Logistics has an option to extend the lease for a further two years. Rent agreed totals USD60,000 per annum.
Active Energy said these lease agreements will provide the company with an immediate source of revenue as it advances its CoalSwitch and biomass operations. Thus, construction of five tonne per hour CoalSwitch plant will commence imminently, Active Energy said.
"Our intention for the Lumberton site 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," explained Chief Executive Michael Rowan.
Active Energy shares were trading 1.0% lower on Wednesday in London at 0.38 pence each.
Active Energy (AEG)