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AEG in proposed timber licence deal

22 May 2017 08:39

Active Energy has reached an agreement in principle for a timber licence and forestry management deal in the Province of Newfoundland and Labrador, Canada.

Active Energy said that if finalised it and its affiliate, Timberlands International, would have a Crown timber licence and forest management agreement relating to two forest management districts covering 1.2 million hectares.

Active Energy said that in addition, both parties were evaluating a number of other collaborative opportunities for both Timberlands and Advanced Biomass Solutions plc, another affiliate company of AEG, which involved timber processing and the commercialisation of the CoalSwitch product, the world's first 'drop in' biomass fuel that could completely replace coal in existing coal fired power stations without the need for expensive retrofitting.

Chief executive Richard Spinks said: "The proposed agreement with the Province of Newfoundland and Labrador represents an important step in the overall strategy for Timberlands in achieving a new and significant partnership in Canada.

"The Province of Newfoundland and Labrador has been clear in its commitment to the safeguarding and improvement of the regional economy whilst continuing to protect the existing environmental landscape.

"Through the Province's association with our group of companies, I am confident that we can deliver material benefits for all stakeholders by unlocking the value of under-utilised forestry assets, through supporting and enhancing the Province's environmental and sustainability criteria, whilst developing commercial benefits in an environmentally friendly fashion.

"Through our experience and knowledge, we apply modern international-standard forestry practises, supplemented by additional revenue streams, including the utilisation of waste products for the CoalSwitch biomass fuel.

"We believe this agreement can provide significant benefits to all parties and I look forward to providing AEG's shareholders with further updates as we finalise the agreement in the coming weeks."

At 8:39am: (LON:AEG) Active Energy Group share price was +0.78p at 3.03p

Story provided by StockMarketWire.com

Related Company: AEG

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