Last checked at 19 Nov 2018 07:00
Active Energy Group Plc / EPIC: AEG / Sector: Alternative Energy
19 November 2018
Active Energy Group Plc ('Active Energy', the 'Company' or the 'Group')
Commercial Updates on Newfoundland and North Carolina
Active Energy, the London quoted international biomass based renewable energy and forestry management business, provides an update relating to its operational opportunities in North America.
Newfoundland Update
The Board of Active Energy confirms that its subsidiary, Timberlands International ('Timberlands International') through its local operating company Timberlands International (Newfoundland and Labrador) Limited ('Timberlands Newfoundland'), has received confirmation of approval by the Ministry of Fisheries and Land Resources of the Crown Province of Newfoundland and Labrador (the 'Province') in regard to the issue of two five-year Commercial Timber Permits ('CTPs') for Forestry Management Areas 17 and 18. Each permit is issued with a five-year revolving renewal facility relating to the Annual Allowable Cut ('AAC') of 100,000 cubic metres per annum, which equates to 500,000 cubic metres over five years.
These CTPs give long-term visibility over fibre and feedstock from Forestry Management Areas (FMAs) 17 and 18 on the Great Northern Peninsula ('GNP') to Timberlands International. The Company will now commence planning for the commercial development of these forestry opportunities and construction and installation of the first CoalSwitch™ plant in Newfoundland. Newfoundland's location is ideal to deliver its CoalSwitch™ product to the domestic and international markets where demand is increasing as, in particular, coal fired power stations are being de-comssioned primarily due to governmental regulations. CoalSwitch™ is a revolutionary biomass drop in coal replacement fuel, which provides an economic solution to the expensive retrofitting of power stations.
Timberlands Newfoundland is working with the Province in regard to the strategic plan for the GNP and the Company expects to be able to provide a more detailed update of this project in the coming weeks.
North Carolina Update
Further to the announcement of 15 October 2018, Active Energy is pleased to announce that it has now identified the area in North Carolina for the establishment of the CoalSwitch™ operating facilities and that, subject to the completion of due diligence and securing available finance, the Company intends to acquire the site, which includes an established factory and surrounding land. . Some of the CoalSwitch™ operating facilites will be moved from the Company's existing site in Utah. The area is adjacent to Georgia Renewable Power LLC ('GRP') site in Lumberton, North Carolina to which it is connected by an existing steam line.
The Company remains on schedule to commence commercial production of CoalSwitch™ from its five tonne per hour plant early in 2019. In addition, the plan for initial CoalSwitch™ production to ramp up to full capacity of 10 tonnes per hour expected during H1 2019 remains on track. Initial off take supply agreements for CoalSwitch™ produced in North Carolina are currently being finalised.
Following the commercial agreements with GRP, the Company is now actively working on new biomass sales opportunities utilising the initial biomass supplies from North Carolina. The Company is anticipating its first revenues from biomass in Q1 2019. The Company is also actively seeking exposure to timber trades in Asia, with reference to China, South Korea and Japan through the negotiation of new supply agreements with existing local operators in the market. Further announcments on these arrangements will be announced as soon as practicable.
Active Energy Chief Executive Officer, Michael Rowan, said, "This is a significant achievement both for the Company and Newfoundland and one which will bring rewards for all parties in the years to come. It is important to note that in addition to delivering value to our Group, it will also provide positive economic opportunities to the many various stakeholders in the Province.
"We are also making solid progress towards establishing our first CoalSwitch™ plant in North Carolina on a now identified site adjacent to our JV partner Georgia Renewable Power LLC's operation in Lumberton. We anticipate achieving first commercial production of CoalSwitch™ early in 2019, with these revenues being supplemented by biomass sales utilising the initial biomass supplies from North Carolina and providing the Group with a strong pipeline of potential revenues in the near term."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
**ENDS**
Enquiries& Further Information:
Website |
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www.active-energy.com www.aeg-plc.com | www.linkedin.com/company/activeenergy
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Enquiries | ||
Active Energy Group Plc | Michael Rowan Chief Executive Officer (Active Energy) | michael.rowan@aegplc.com
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Northland Capital Partners Limited Nominated Adviser
| David Hignell / Gerry Beaney / Domile Andruskeviciute | Office: +44 (0)20 3861 6625 |
Optiva Securities Ltd Broker | Jeremy King / Ed McDermott | Office: +44 (0)20 3137 1902 |
St Brides Partners Financial PR Adviser | Susie Geliher / Isabel de Salis | info@stbridespartners.co.uk Office: +44 (0) 20 7236 1177 |
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.