(Alliance News) - Shares in Active Energy Group PLC jumped Thursday after it agreed terms for its first CoalSwitch licence agreement with Canadian forestry firm RMD Environmentals Inc.
Shares in Active Energy were 39% higher at 0.53 pence in London on Thursday.
Under the deal, RMD will "develop and manage" projects using its wood fibre fuel product CoalSwitch in the Canadian states of British Columbia and Alberta. It is expected the first plant will be commissioned by RMB within the next 18 months.
Active Energy will receive a USD1.8 million licence fee from RMD followed by royalty payments of USD5.00 per tonne produced by RMD.
In 2018, Active Energy generated a USD4.1 million pretax loss on revenue of USD195,000.
"This inaugural licence agreement with RMDE is a significant strategic milestone for AEG as the company focusses on the commercial roll-out of the CoalSwitch and black pellet biomass technology, which it has invested in and developed over the last four years," Chief Executive Officer Michael Rowan said.
"To capitalise on these opportunities, AEG recognises that it needs to accelerate market development through the construction of operating, high volume, production facilities in various regions," Rowan added. "This will be achieved both through wholly owned production facilities, and through commercial partnerships worldwide. RMDE is AEG's first licensed partner; the directors believe collaborations of this nature will expedite the commercial roll-out of CoalSwitch."
By Ahren Lester; ahrenlester@alliancenews.com
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Active Energy (AEG)