Active Energy Regulatory News (AEG)

Active Energy Group Plc / EPIC: AEG / Sector: Alternative Energy

13 March 2018

Active Energy Group Plc ('Active Energy', the 'Company' or the 'Group')

Joint Venture Signed with Cobant Sp. z o.o. to Commercialise CoalSwitch™ in Poland

Active Energy, the London quoted international biomass based renewable energy and forestry management business, is pleased to announce that it has signed a joint venture agreement (the "Joint Venture" or "JVA") with Cobant Sp. z o.o. ('Cobant'), a Polish research, development and coal recovery/production company active in the land reclamation, environmental services and energy sectors, to explore opportunities to commercialise the Company's unique CoalSwitch™ coal additive in blends with reclaimed coal from coal slurry dumps in Upper Silesia, Poland.

Overview

· JVA signed with one of Poland's leading energy sector research and development companies following recent testing of the Company's unique CoalSwitch™ coal additive in blends with reclaimed coal from coal slurry waste dumps, located in Upper Silesia, Poland;

· Detailed and varied tests demonstrated outperformance by CoalSwitch™ over all other options tested by Cobant over the past three years, in various concentrations, 15% CoalSwitch / 85% Bytom (a city in southern Poland) coal being the most efficient and allowing for zero chemical binder requirement on reclaimed coal fines reconstitution;

· Objective to produce a new 'Super Fuel' product, utilising a CoalSwitch™ component, produced from sawmill waste and forestry residue, combined together with reclaimed and cleaned coal fines from Upper Silesias' many historical coal waste dumps, processed through Cobant's own patented coal waste reclamation technology; and

· Intention to roll out product to other coal-fired power plants and for household use, initially in Poland, although significant opportunity is recognised across the CEE and EU member countries where residual coal waste can also be found adjacent to coal-fired power plants.

Richard Spinks, Active Energy Chief Executive Officer said, "Poland's coal industry lies at the centre of the Polish identity, however it is considered to be one of the most polluting coal burning countries in Europe. Recently, much has been made of claims that Poland's coal power pollution is negatively affecting its neighbours across the European Union. The Group's objective with this JVA with Cobant is to support this significant industry and regional employer in its efforts to meet its emissions targets and clean air requirements, whilst finding a use for their legacy and arising coal waste in a 'Super Fuel' blend. Both Active Energy and Cobant believe this can be achieved by reconfiguring the feedstock of coal power plants to maximise output and enabling power plant operators to achieve their green credentials, whilst beating the mandated emission reduction targets set out by the European Union for 2020 and targeting the more ambitious targets for 2030.

"Our recent conversations with power plant operators and government agencies in Poland have demonstrated all parties' eagerness to adopt cleaner energy protocols. As such, I look forward to providing further updates regarding the JVA as appropriate."

Pawel Woszczyk, Cobant Sp. z o.o. Chief Executive Officer said, "Our cooperation enables the opportunity to use waste coal accumulated in the coal slurry waste dumps to become valuable feedstock, and this should offer a real alternative for the power industry in Poland and throughout Europe. Poland is historically bound to coal so it is a complete reversal and refocus on new fuel sources would be extremely difficult to implement. However, new generation coal fuels similar to the one we have developed together with Active Energy, creates a solution to this "Gordian Knot" by offering new "Super Fuel" which is innovatively formed between coal and biomass. This has significant implications for the economy and the environmentally friendly use of coal in Poland, including significantly reducing smog.

"The timing for introduction of this new "Super Fuel' in Poland is beneficial. New legislation is being prepared by the Polish government banning usage of low quality solid fuels for individual use. We predict a significant market opportunity in traditional coal uses in Poland with the introduction of our new "Super Fuel" based on our own local coal resources processed and enriched by CoalSwitch™."

Further Information

Active Energy has entered into the Joint Venture with Cobant in order to evaluate the Company's CoalSwitch™ coal additive in blends with reclaimed coal from waste dumps in Upper Silesia, Poland.

CoalSwitch™ is Active Energy's revolutionary direct drop-in coal replacement biomass fuel that can be mixed in any ratio with coal fines or completely replace coal in existing coal-fired power stations, without retrofit. The Group believes CoalSwitch™ has the potential to act globally not only as an emissions reductant, but as a sulphur capture and reduction compound. In addition, chemical binders, which have traditionally been used in the global reclaimed coal reclamation sector, are no longer required when utilising CoalSwitch™ pellets. Moreover, some additional savings are possible for power plant operators, as usage of this new alternative coal fuel does not require such intensive desulphurisation and the fuel has lower ash content.

A series of tests were conducted between October 2017 and February 2018, whereby CoalSwitch™ was fired together with blends of coal fines, the results of which exceeded the expectations of both Active Energy's and Cobant's management teams.

Following these tests, a number of further tests are continuing with partners and government agencies, results of which will be announced once received.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

**ENDS**

Enquiries & Further Information:

About Active Energy Group:

Active Energy Group Plc (AIM: AEG.L) is a London Stock Exchange-listed international renewable energy business based upon forestry assets. Its model is focussed on capturing the entire forestry value chain through sourcing, utilising and commercialising assets, and setting a new standard in the sustainable management and optimisation of timber resources.

The Company is led by a highly technical and commercial team with the experience to execute its defined growth strategy and build its visibility, primarily as a London-listed timber opportunity with a revolutionary biomass fuel technology.

About Cobant:

Cobant has been operating since 2014 carrying out research and development using modern research methods and techniques. In these activities Cobant has developed and tested prototype installation allowing in-field verification of developed innovative technology allowing recovery of high quality coal from coal waste slurries deposited around Poland. Cobant has focused on the Upper Silesian region, where the EU mandates the clean-up of brownfield coal waste sites.

Cobant provides comprehensive support for strategic stages of development, establishing cooperation within the academic commnuity and scientific institutions and has two laboratories which will be utilised by JVA company, in Silesia. One of which is located at the Silesia Polytechnical University in Slask, Poland.

The scope of Cobant's activities also includes the development of effective strategy, creation of innovations, implementation of revolutionary solutions and commercialisation of knowledge gained with a focus on the coal mining and coal-fired power industries of Poland and the CEE.

The Cobant team consists of a dozen of Poland's leading experts from academia and industry with decades of experience in this sector in addition to relationships and experience of working with the Polish coal industry and coal-fired power operators for many years.