Active Energy to meet Newfoundland government next week over forestry contract

Active Energy Group PLC (LON:AEG) expects to get a decision from the provincial government over its Newfoundland forestry management contracts.

In 2017, Active was awarded a contract to manage two districts on the Great Northern Peninsula, of Newfoundland, but is still awaiting final approval from the Newfoundland authorities.

Meetings between Active Energy and the Government are scheduled for the week commencing 1 October and the board believes that a conclusion to this matter is imminent.

Active Energy will use waste wood from the contract to provide raw material for its  coal substitute technology CoalSwitch.

Another memorandum has been signed with a company in Northern Alberta to take control of more forestry assets.

The focus this year will be to commercialise CoalSwitch and two other products soil enhancer PeatSwitch and SuperFuel, a blended fuel that uses reclaimed coal fines.

“A CoalSwitch plant can transform the metrics of marginal forestry assets and the company intends to capitalise on this by building and operating CoalSwitch plants in key targeted locations where feedstock can be secured by long term forestry management agreements, timber licences or timber supply agreements,” said Michael Rowan, chief executive.

Losses in the half year to June were US$1.6mln (US$2mln loss), which included the final US$549,000 for the closure of the Ukraine timber business.

Shares eased 2% to 2.35p.

Story by ProactiveInvestors