Active Energy Regulatory News (AEG)

7 March 2016

Active Energy Group Plc("Active Energy Group" or the "Group" or the "Company" or "AEG")

AEG CoalSwitch Deposition and Burn Test Results ConfirmLower Emissions, More Efficient Combustion and Fewer Deposits than Coal;Prove Technical and Commercial Viability

AEG CoalSwitch, the renewable energy division of Active Energy Group Plc (AIM: AEG.L), the AIM-listed supplier of timberland management and development services, industrial wood fibre and Biomass coal replacement fuels, announces that late last week it received the results from the burn testing of its CoalSwitch fuel at the University of Utah (announced in the RNS dated 8 February 2016).

The University has reported that CoalSwitch's technical and commercial viability for use a standalone fuel - or co-fired in high concentrations with coal in traditional coal-fired power plants - provides significant environmental and commercial advantages to industrial power generators.

The burn testing, conducted at the University's Clean and Secure Energy Institute, evaluated the performance of AEG CoalSwitch fuel in its 100kW pulverised coal combustor, which closely replicates the full-scale facilities utilised in industrial coal-fired power plants around the world.

The testing process compared CoalSwitch burn test performance to that of Illinois Number 6 coal (a typical feedstock used for industrial power generation in the United States), and a CoalSwitch/Illinois coal mix under the same test conditions.

Key findings include:

· CoalSwitch fuel burned at near-identical temperatures to coal

· CoalSwitch fuel burned more efficiently than coal, and produced far less ash

· CoalSwitch fuel burned cleaner than coal, and when co-fired with coal generated less Sulphur Dioxide (SO2) than the coal alone

· Along with reducing the amount of ultrafine particles in the blended fuel, the mineral matter (ash) particle size distribution of CoalSwitch fuel was nearly the same as that for coal

· CoalSwitch fuel was essentially free of both Potassium (K) and Sodium (Na), so combustion did not cause the fouling issues (deposits) that are commonly a barrier to the use of Biomass fuels in coal-fired power plants

· The CoalSwitch/coal blend had a lower Loss on Ignition than the pure coal, leaving far less unburned carbon in the ash, demonstrating far better combustion of coal when CoalSwitch is present

Richard Spinks, CEO of Active Energy Group Plc, commented: "The results of the CoalSwitch testing prove that the Group's faith in the technology and our investment in it over the past twelve months were fully justified; and demonstrate that, for the first time to our knowledge, the glass wall between coal and Biomass usage within existing power generation plants has been shattered."

"They confirm that CoalSwitch fuel represents a game-changer for the power generation industry, and delivers significant financial and environmental benefits over current Biomass fuel solutions. "

 "We are currently preparing a more detailed RNS Reach announcement, which is expected to be available later today."

- ENDS - 

ABOUT ACTIVE ENERGY GROUP PLC:

Active Energy Group Plc is a London Stock Exchange AIM-quoted company (AIM: AEG.L). Headquartered in the UK, it is a fast-expanding international business that has experienced exceptionally strong growth and diversification into complementary industry sectors since the current management team assumed responsibility in mid-2012.

The Group has considerable expertise across the entire timber industry supply chain - from forest to factory and fuel.

Its three trading divisions, which operate as independent business units but work together to optimise resources and opportunities, are focussed on providing environmentally-sensitive solutions to specific global market sectors:

· AEG TimberLands: Forestry Asset Management and Development

· AEG WoodFibre: Industrial Wood Fibre for Medium-Density Fibreboard (MDF) Manufacturing

· AEG CoalSwitch: Advanced Biomass Coal Replacement Fuels and Fuel Processing Systems

Active Energy Group Plc operates from four international locations:

· Ukraine, where it is the largest producer and exporter of wood fibre for the Turkish MDF manufacturing sector.

· Canada, where it has entered into a joint venture with several indigenous Métis Settlements to commercialise in excess of 300,000 hectares of their lands, which contain valuable forests and natural resources.

· The United Kingdom and United States of America, where it develops advanced Biomass fuels and fuel processing systems that convert waste wood and industrial/agricultural residues into coal replacement feedstock for clean energy power generation in a joint venture with Biomass Energy Enhancements LLC.

Active Energy Group Plc is led by a highly experienced management team, supported by forestry, timber processing and renewable energy experts within its trading divisions. All possess a proven track record in the industries and regions in which the company operates and from which its revenues are generated.

The Group has grown significantly in recent years, and has established a firm foundation, excellent reputation and international customer base upon which to deliver lasting value to all stakeholders.

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