Highlights

  • Active Energy advanced CoalSwitch® toward commercial use through a proposed Polish municipal CHP validation site.
  • The ICE partnership focuses on real-world testing using existing district heating infrastructure.
  • The planned validation facility is intended to support future scale-up assessments and off-take frameworks.

Active Energy Group plc (LSE:AEG) has issued a progress update on the commercial deployment of its CoalSwitch® technology, following the completion of its strategic review and the renewal of collaboration with Indigenous Canadian Energy (ICE). The update outlines management’s recent activities aimed at transitioning CoalSwitch® from evaluation into practical deployment through partnerships and live operating environments.

The Company stated that senior management travelled to Poland to continue discussions with ICE and to evaluate commercial opportunities within the municipal combined heat and power (CHP) sector. This engagement aligns with the Board’s focus on generating long-term value from CoalSwitch® by identifying applications that rely on existing infrastructure and established operators.

Poland Engagement with Municipal CHP Operator
During the visit, representatives of Active Energy and ICE met with senior management of a privatised municipal CHP operator that supplies around 40% of the city’s district heating demand. Following these discussions, the CHP operator formally invited ICE, in partnership with Active Energy, to locate the first ICE/CoalSwitch® validation plant within an industrial building adjacent to its operating boilers.

The proposed co-location is designed to enable CoalSwitch® and ICE Black Pellets™ to be tested under live operating conditions. According to the Company, this setup would allow performance, feedstock and operational data to be collected while supplying an active heat and power system.

Validation Plant and Agreed Frameworks
Active Energy reported that the validation plant has already been procured and is expected to become operational within approximately six months. The facility is intended to generate data relevant to future commercial assessments, including benchmarks for potential replication.

AEG, ICE and the CHP operator have agreed in principle to proceed with commissioning the validation plant, establish an initial off-take framework for solid engineered biomass pellet (SEBP) fuels, and develop a joint commercial structure for potential future scale-up. Engineering and commercial documentation for a larger facility at the same site will be progressed, subject to approvals and funding.

Market Context in Poland
Poland remains one of Europe’s most coal-reliant district heating markets, with CHP operators facing regulatory and economic pressures to reduce coal usage. The Company stated that CoalSwitch® and ICE Black Pellets™ may offer an alternative pathway that utilises existing infrastructure.

Active Energy noted that discussions in Poland indicated demand for coal-replacement fuels exceeds near-term supply. The validation facility is intended to act as a reference site for international partners and off-takers evaluating potential deployment in other regions.

Share Price Snapshot
AEG was trading at GBX 0.08  per share as of 18 December 2025.