Active Energy energises Ghummud site ahead of schedule

(Sharecast News) - Active Energy Group said on Monday that its Ghummud site in the UAE had been energised ahead of schedule, accelerating its timeline to revenue generation and supporting its strategy of leveraging existing grid connections. The AIM-traded company said deployment of modular digital infrastructure at the site was already underway, with operations now expected to start materially ahead of the previously indicated 10 to 12-week timeframe.

It said the milestone was seen as validation of its approach to acquiring pre-existing grid connections to reduce capital intensity, execution risk and time to market.

Active Energy added that it expected to complete its previously announced Kazna transaction by the end of April, with energisation at that site also anticipated on an accelerated basis given preparatory work already completed.

Together, the Ghummud and Kazna sites were expected to provide around 5.5 megavolt-ampere of capacity, generating about $2.6m in annual revenue and $1.2m in annual free cash flow at steady state, subject to market conditions and utilisation levels.

The group said the economics demonstrated a scalable model as it targeted growth from 5.5MVA to 15MVA and ultimately towards 100 megawatts of capacity.

"Early energisation at Ghummud is a clear proof point of our strategy in action," said chief executive Paul Elliott.

"By focusing on acquiring ready-to-deploy grid connections, we are materially reducing time to revenue and capital intensity, while accelerating our path to scale.

"With Kazna progressing and further opportunities already under review, we are building strong momentum towards our 100MW target and establishing a scalable and ultra-low cost power digital infrastructure platform across the region."

The company said it had also identified two additional grid connection opportunities and had started initial due diligence and commercial negotiations as it looked to expand its footprint in the region.

At 1352 BST, shares in Active Energy Group were up 9.17% at 0.11p.

Reporting by Josh White for Sharecast.com.

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