Reactor Installation to Commence at Lumberton

Active Energy Group Plc / EPIC: AEG / Sector: Alternative Energy

11 July 2019

Active Energy Group Plc ('Active Energy', 'AEG' or the 'Company')

Reactor Installation to Commence at LumbertonFollowing Appointment of Local Engineering and Consulting Firm

Active Energy, the London quoted international biomass based renewable energy business, is pleased to announce that it has appointed the experienced US based engineering and consulting firm, Absolute Welding & Consulting ('AWC') to install the commercial scale reactors, recently transported from Utah, at its industrial site in Lumberton, Robeson County, North Carolina ('Lumberton').

Overview

· AWC appointed to manage and execute the installation of the commercial scale reactors at Lumberton, with work set to commence imminently;

· AWC is a US based full service, mechanical engineering company specialising in new plant construction, plant relocation, plant upgrades and retro-fits;

· Work anticipated to be completed in the upcoming months with the five-tonne per hour CoalSwitch™ plant to be operational in Q4 2019;

· Test reactors have been in operation at Lumberton undertaking a test programme for prospective clients, as per the announcement dated 4 June 2019, and will continue to operate simultaneously with the commercial scale reactors following installation;

· Lumberton to be AEG's first permanent production facility for CoalSwitch™, a proprietary technology that transforms low-cost biomass material into high-value green fuels

Michael Rowan, Active Energy Chief Executive said, "Following the appointment of AWC, installation of the commercial scale reactors is set to commence later this week, progressing the construction and installation of the five tonne per hour CoalSwitch™ plant. We expect the AWC engineers to leverage their experience in plant construction to ensure that the reactors are installed in a timely manner so that Active Energy can start delivering product to market in order to generate commercial sales of CoalSwitch™.

"Lumberton shall serve as the Company's first permanent commercial production facility for CoalSwitch™ from which we will be able to generate the revenue, through the sale of CoalSwitch™ and identification of ancillary revenue streams, needed to grow our business. I look forward to providing AEG's shareholders with further updates regarding corporate and operational developments during this exciting period for the Company."

Further Information

Active Energy has appointed Absolute Welding & Consulting to erect one reactor structure that will house four individual commercial scale reactors. Pursuant to the terms of the Company's Contractor Agreement with AWC, AWC shall assume responsibility for the following elements of the installation:

· Installation of valving for each individual reactor;

· Retrofitting skirting at the reactors to accommodate a larger opening at auto-clave doors;

· Fabrication of three additional conveyers' assemblies;

· Fabrication and installation of one surge bin assembly; and

· Installation of one screw press and dryer assembly.

Additional Information on the Lumberton Site

Lumberton includes all requisite ancillary facilities for the production of CoalSwitch™, including all relevant power supplies, water treatment facilities, an analysis lab and offices. The Directors believe that the size of Lumberton ensures the opportunity for significant expansion of the initial CoalSwitch™ plant via the construction of additional CoalSwitch™ production facilities targeting capacity of up to 400,000 tonnes per annum over the next 2 years. Furthermore, the Directors expect that AEG will benefit from additional near-term commercial opportunities including complementary biomass, saw logging and other opportunities in the Lumberton and North Carolina areas.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

**ENDS**

Enquiries& Further Information:

About Active Energy Group:

Active Energy Group plc 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 fuels. 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 plant modification.

Active Energy Group's immediate strategic focus is the production and commercialisation of CoalSwitch™ and SuperFuel™, a low emission CoalSwitch™ blend that utilises waste coal fines.