Active Energy Group (AEG) entered into an agreement in principle with the Province of Newfoundland and Labrador, Canada, that if finalised will provide the company and its affiliate, Timberlands International plc, with a Crown timber licence and forest management agreement relating to two Forest Management Districts covering 1.2 million hectares.
Richard Spinks, Chief Executive Officer of Active Energy, commented:
“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.”
According to the announcement, both parties are also evaluating a number of other collaborative opportunities for both Timberlands and Advanced Biomass Solutions plc, another affiliate company of AEG, involving timber processing and the commercialisation of the CoalSwitch product.
About Active Energy:
The company is London Stock Exchange AIM-listed international supplier of industrial wood chip and timber, Biomass for Energy (BFE) fuel products, and forestry asset development services. It has several operational set-ups in different segments: in Ukraine, Canada, the U.K and the U.S. It is the largest producer and exporter of processed wood products (in the form of wood chip) in Ukraine. In 2014 it reported revenues of USD 17.395 million.