Active Energy, the London quoted renewable energy business focussed on biomass, is pleased to announce that it has signed two lease agreements at its recently acquired commercial plant in Lumberton, Robeson County, North Carolina.
- Lease agreement signed with Tencate Protective Fabrics (‘Tencate’), an existing tenant at the Lumberton Site, including an agreed increase in rental income.
- Lease agreement signed with Renewable Logistics Systems, LLC (‘RLS’) including land within the Lumberton Site to be used for saw logging and wood processing, to complement the business activities relating to the Company’s CoalSwitch™ and biomass operations.
- Lease agreements provide the Company with an immediate source of revenue as it advances its CoalSwitch™ and biomass operations at the Lumberton Site.
- Construction of five tonne per hour CoalSwitch™ plant to commence imminently.
Key Terms of Lease Agreement with TenCate
- TenCate is an established provider of high-quality industrial safety fabrics for a range of industries including utilities and infrastructure, energy, oil and gas, chemical, metal, steel and mining, and manufacturing.
- Two-year lease agreement that will automatically renew for a further 12-month period unless written notice is provided within 90 days.
- AEG to provide adequate staff to oversee delivery and storage of fabric on behalf of Tencate, in addition to specified required equipment.
- Rent agreed for an annual sum of US$204,000 to be paid to the Company.
Key Terms of Lease Agreement with RLS
- RLS is a regional supplier of saw logs, pulpwood and wood chips for industrial and domestic use.
- Three-year lease agreement, which will formally commence on 15 July 2019, with the opportunity to extend the agreement for a further two years.
- Rent agreed for an annual total sum of US$60,000 to be paid to the Company.
- The lease provides for an increase in acreage use from an initial 5 acres up to 30 acres during the term of the lease with a correspondent increase in rental income.
Michael Rowan, CEO of Active Energy Group, said, “Our intention for the Lumberton Site was to create a strategic hub to house the first permanent CoalSwitch™ production facility, in addition to generating other incremental sources of revenue for Active Energy, whilst delivering a positive impact on the local economy. These lease agreements not only demonstrate how the Company is committed to supporting local business but also provide AEG with a valued source of revenue that will assist in the future development of the Lumberton Site. Notably, the agreement with RLS enables AEG to commence a saw logging operation at the Lumberton Site and presents additional complementary opportunities to the Company.”