Under the terms of the non-exclusive agreement ABS and Lumino will work together on financing, development and operation of each CoalSwitch™ plant. Each plant will be capitalized primarily by equity investments and debt financing from Lumino and a consortium of financial institutions.
Lumino and its affiliates will also supply woody biomass feedstock that will be used in the plants and processed into CoalSwitch™. Lumino will also source long-term off-take agreements with entities in Japan and South Korea, including two biomass plants currently under development by its parent, Solariant.
Brian Evans-Jones, Active Energy and ABS Director stated, "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™. Lumino will utilise its network of finance providers, as well as source both woody biomass and long-term offtake agreements, whilst ABS will supply the technology and plant construction."
ABS will be responsible for the construction and ongoing operations, management and the maintenance of each CoalSwitch™ plant.
Daniel Kim, Lumino Managing Director, said, "We believe that CoalSwitch™ is a game-changing biomass product that has the potential to transform the energy sector. We have been involved in the renewable energy sector for years, developing, constructing and financing renewable energy power plants and pellet mills across Asia. We see this Agreement as a terrific opportunity that works to our strengths and leverages our position and contact base. I am looking forward to working with ABS and being a part of the forthcoming commercial roll-out of CoalSwitch™."
CoalSwitch™ has a unique solution to enable coal-fired power plants to continue operating at acceptable environmental standards. To facilitate the expansion, ABS is establishing operations in the Americas, Europe and Asia and has representation in those areas in terms of business development and technical support.