Aim-listed renewable energy firm Active Energy's shares jumped as much as 15 per cent today after the company announced an agreement with California-based Lumino to roll out eight CoalSwitch plants.
Shares in Active Energy closed up more than nine per cent at 2.1p after its affiliate Advanced Biomass Solutions (ABS) said it would commercialise a "revolutionary" biomass coal replacement fuel called CoalSwitch.
CoalSwitch is a feedstock that reduces the amount of coal used in thermal power stations and which can be directly mixed with coal.
The plants will be set up in Vietnam, the Philippines and other southeast Asian countries, and they will have production capacity of between 20 to 30 tonnes per hour.
Total production is estimated to be in the region of 1.5m tonnes of CoalSwitch per year from the initial eight plants, and construction of the first plants are targeted for the first half of 2018.
Brian Evans-Jones, Active Energy and ABS director said: "We believe this is a transformational agreement for both Active Energy and ABS. Lumino is a fantastic partner with immense experience within the renewable energy sector. Together, we intend to create a vertically integrated model encompassing the key components needed for the successful commercial roll-out of CoalSwitch."
Daniel Kim, Lumino managing director, added that CoalSwitch was a "game-changing" biomass product with the potential to transform the energy sector.