LONDON (Alliance News) - Timber processing and renewable energy company Active Energy Group PLC said its three units were performing well in the first half of 2016.
AEG Woodfibre - the wood fibre production business which is Active Energy's core revenue generator - continued to expand and performed in line with management expectations, the company said ahead of its annual general meeting on Thursday.
Following agreements with the State Agency of Forestry Resources of Ukraine to purchase wood from more than 120 sustainable forests in the national forestry network, the Active Energy plans to ramp-up its fully-automated hardwood production line there, already capable of processing around 3,000 tonnes of raw material per day.
At its Turkish wood fibre site, Active Energy expects revenue of USD35 million in all of 2016, an increase on the USD24.4 million made in 2015. The company said it had been in contact with Turkish clients in wake of the failed military coup on Friday and was assured trading in the country will remain unchanged. In addition to Turkey, the company is considering additional projects in Canada, the United States, Europe, and Asia.
Due to the "success" of current operations, Active Energy said it has been approached by both existing and new customers looking for a supply of wood fibre.
In the company's AEG Timberlands division, which provides sustainable management of forests, it said it has progressed with a number of exciting projects. In July, Active Energy signed a memorandum of understanding with a regional government in Ukraine, relating to the management, development and sustainable commercialisation of approximately 186,500 hectares of commercial forestry in northern Ukraine.
Active Energy said it continues to make progress with the finalisation of the Metis Settlement forestry economic development and coal reduction initiative in Alberta, Canada. The company said it feels confident it has the support of the Alberta government.
In the AEG Coalswitch division, Active Energy said it is making progress in commercialising one of the world's first biomass fuels to "directly replace" coal and "transform the coal energy dynamic". Following the positive test of the biomass fuel at the University of Utah, Active Energy has established a new pelleting plant in Salt Lake City.
Active Energy said it has a "firm foundation" to expand operations, increase market share, and increase financial performance across the three units.
Shares in Active Energy were up 8.8% at 3.40 pence Thursday morning.
By Lucy Heming; lucyheming@alliancenews.com
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Active Energy (AEG)