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(Sharecast News) - Energy pellet producer Active Energy announced on Tuesday that it has achieved 'Chain of Custody' (CoC) and 'Controlled Wood' certification for its 'CoalSwitch' fuel, compliant with the Forest Stewardship Council (FSC) standards.
The AIM-traded firm said attaining the certification involved audits by certification body SCS Global Services, which examined the full CoalSwitch production process, including the entire supply chain from feedstock source to final production of fuel.
It said certification to the FSC standards confirmed that the production of CoalSwitch would use "forest-based materials from responsible sources", and that its suppliers were committed to "the strictest standards" currently governing forest management.
The board said FSC certification was a basic market prerequisite to permit biomass products to be sold into many of its target markets.
As such, certification represented a "significant milestone", which would allow the firm to engage with a wider range of prospective customers.
While not a legislative requirement in many jurisdictions, a number of prospective customers had reportedly indicated that FSC certification would support their corporate environmental, social and governance (ESG) agendas, enhancing the prospect of future orders.
"Not only does this certification confirm to our prospective customers that protection of the environment is at the heart of our operations, the FSC certification guarantees that CoalSwitch is produced from responsibly managed sources," said chief executive officer Michael Rowan.
"Japan is a key target market for new generation biomass fuels - Active Energy has been delivering samples of CoalSwitch to potential customers who regard FSC as a major prerequisite for future sales contracts.
"The achievement of this certification opens up new sales opportunities for Active Energy."
Rowan said the company would update shareholders further as it progressed with developing its Ashland production facility in Maine.
"We are looking forward to beginning to produce significant volumes of CoalSwitch to meet the indicative international demand we are seeing."
At 1336 GMT, shares in Active Energy Group were up 5.93% at 0.14p.
