A London-based biomass feedstock firm has raised £1 million in oversubscribed placings to fund the execution strategy for its wood-fibre pellets.
Active Energy, which claims its CoalSwitch fuel can be used at coal-fired power plants with no modifications, issued 33,333,333 new shares at a price of 3p per share, which it sold to new and existing investors.
The net proceeds will fund the organisation’s development of its forestry management operations and the commercialisation of its coal-replacement biomass fuel.
The company said it would now focus on exploring commercial opportunities in Canada, the US and Europe.
Active Energy Executive Chairman Michael Rowan said: “We were delighted with the positive response to the Placing as existing shareholders and stakeholders recognise the importance to Active Energy of the forestry business in Canada and the significant commercial potential of CoalSwitch and its derivative products.”