(Alliance News) - Clean Invest Africa PLC on Tuesday said its wholly-owned subsidiary Coaltech Ltd continues to seek a commercial contract, having made no sales so far.

The London-based investor in energy projects in Africa said that Coaltech lead times on sales were "proving extremely long", and despite extensive investment in past years no sales had been made by the company so far.

Coaltech, which intends to supply coal agglomeration plant technology, is dependent on the conversion of commercial discussions into a commercial contract, but the pipeline remains strong, Clean Invest said.

The transition to commercialisation has been slowed by cash flow, increase in market demand and an increase in pricing for coal fines, the company said, while Coaltech requires certainty of a reasonably prices supply of fines and offtake for its end product.

Facing limited funds, the company has agreed to "only incur such costs that are absolutely necessary to sustain the business", while Coaltech either generates cashflow from production, or achieves a commercial contract.

Clean Invest shares were down 25% to 0.25 pence per share at midday on Tuesday in London.

By Harvey Dorset, Alliance News reporter

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