(Alliance News) - Active Energy Group PLC on Monday reported a swing to a pretax profit of USD1.8 million in its half year results.
Active Energy is a London-based renewable energy business focused on the production of energy pellets made from biomass.
Pretax profit in the six months to June 30 stood at USD1.8m, swinging from a pretax loss of USD1.5 million the year before. Active Energy reported net finance gains of USD3.2 million, compared to net finance costs of USD443,731.
The company generated no revenue, unchanged from last year. It is in the process of commercialising its CoalSwitch product, an energy pellet made from biomass. The company says that tests have confirmed CoalSwitch's CO2 reductions compared to both coal and natural gas as well as its advantages over competitor technologies.
In July, the company received USD3.9 million from the sale of the Lumberton site in North Carolina.
Active Energy said it is transferring the infrastructure from the Lumberton site to the new CoalSwitch site based in Maine.
The first deliveries of CoalSwitch fuel are expected to begin in the first quarter of 2023. Active Energy is focused on securing long term offtake contracts for CoalSwitch in North America, Europe and Japan.
The signing of the Inflation Reduction Act has also provided "exciting opportunities", the company noted.
For the remainder of 2022 the company will attempt to convert the "numerous commercial discussions" into firm orders for CoalSwitch.
Chief Executive Officer Michael Rowan said: "In the first half of the year, AEG has continued to make significant progress towards commercialising CoalSwitch. The testing programme for CoalSwitch is consistently demonstrating its advantages and economic benefits versus traditional biomass pellets.
"We have completed the construction planning with Player Design International Inc at the Ashland Facility and await the next stage of equipment deliveries so as to allow Player Design International Inc to commence construction activities at the site during the fourth quarter of this year."
Shares in Active Energy were trading 0.8% higher at 6.15 pence each in London at midday on Monday.
By Chris Dorrell; chrisdorrell@alliancenews.com
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Active Energy (AEG)