Business update for Q1 2023

RNS Number : 8485U

Active Energy Group PLC

31 March 2023

 

31 March 2023

Active Energy Group Plc

("Active Energy", "AEG", or the "Company")

Business update for Q1 2023

Continued progress towards CoalSwitch® production

Active Energy (AIM:AEG, OTCQB:ATGVF), the international biomass based renewable energy business, is pleased to provide a business update at the end of the first quarter.

Summary of activities

During the quarter AEG has continued to work toward generating future commitments for sales of CoalSwitch®, including prospective sales of the proprietary CoalSwitch® production technology. The Company's sales teams in the US and UK have extended the sales pipeline of customers who wish to purchase CoalSwitch® product. Currently in the UK, the indications of interest have extended to above 10,000 tonnes of fuel and future customers have indicated a desire to enter longer term supply contracts.

Player Design Inc ("PDI") has confirmed that preparation and construction for the first CoalSwitch® production facility (the "Facility") at PDI's site at Ashland, Maine continues to progress and is scheduled for completion in Q2 2023. Preparations include ongoing conversations with the State of Maine in regard to the relevant permit amendments applicable to the Facility.

PDI has informed the Company that it still anticipates that first production of CoalSwitch® product at the Facility should commence during Q2 and that these volumes will be available for delivery to prospective AEG customers. PDI's initial production volumes remain targeted at an annualised rate of 35,000 tons per annum for deliveries to AEG's customers in the US and in Europe.

To assist current production activities at Ashland, AEG has agreed with PDI to act as the European distributor for PDI's other biomass-based products, namely pressed logs, which are being produced at the Facility. AEG has received the relevant authorisations to permit UK sales and the first products have arrived in the UK. The sale of this biomass-based product provides AEG with the additional opportunity to forge early commercial relationships with potential future UK based customers for CoalSwitch®. These distribution activities are expected to generate modest revenues for AEG throughout the remainder of this calendar year. 

Appointment of Chief Operating Officer 

As announced on 1 March 2023, Steve Schaar has joined the Company as Chief Operating Officer to focus on the development of CoalSwitch® production in the United States. Steve's experience as an operator of large-scale biomass production facilities is already proving invaluable as the opportunities for CoalSwitch® production expand in the US.

Presentation at the 2023 Advanced Bioeconomy Leadership Conference ("ABLC 2023")

Michael Rowan recently presented at ABLC 2023 in Washington DC where he introduced CoalSwitch® to an audience comprising biomass producers, ESG leaders and US Government officials. While there, AEG also held briefings with senior representatives from the US Department of Energy, senior policy advisers and several strategic partners to explain CoalSwitch®'s eligibility for carbon credits and other credit emissions programs in the US.

A copy of the presentation given by AEG at the conference will shortly be made available at https://www.aegplc.com/ .

Outlook

The Board will update shareholders on the Company's financial position in the announcement of the Company's audited results for the year ended 31 December 2022, which are expected to be released in the second quarter of 2023. The Company has sufficient funds to finance all current marketing and sales activities required to accelerate and complete the first commercial roll out and deliveries of  CoalSwitch®.  

Michael Rowan, CEO of Active Energy, commented:  

"PDI's development program for the CoalSwitch® facility at Ashland continues and PDI has advised that AEG should receive the first production volumes of CoalSwitch® in Q2 2023.

"AEG continues to raise the CoalSwitch ® profile with potential customers, strategic partners and regulatory bodies, both in the US and the UK. Through the analysis with Karbone, AEG is now able to demonstrate that CoalSwitch® can turn a pure cost feedstock into a profitable proposition and assist in the achievement of ESG corporate goals.

"We look forward to providing a further update on our progress during Q2 as we continue to work toward the establishment of CoalSwitch® as the market standard for next generation biomass fuels in the coming years."

Enquiries:  

Active Energy Group Plc	Michael Rowan  (Chief Executive Officer) Michelle Fagan   (Chief Financial Officer)	[e-mail]
Allenby Capital Limited Nominated Adviser and Broker	Nick Naylor/James Reeve/Daniel Dearden-Williams   (Corporate Finance) Amrit Nahal  (Sales/Corporate Broking)	Office: [phone]
Camarco Financial PR Adviser	Tom Huddart / Emily Hall / Lily Pettifar	[e-mail] Office: [phone]
Scoville PR US PR Adviser	John Williams	[e-mail]

Website	LinkedIn	Twitter
www.aegplc.com	www.linkedin.com/company/activeenergy	https://twitter.com/aegplc @aegplc

About Active Energy Group:

Headquartered in London with operations in the United States, Active Energy Group plc (AIM: AEG, OTCQB:ATGVF) is a biomass-based renewable energy company focused on the production and development of next generation biomass products that have the potential to transform coal fired power and heavy industries and the existing renewable biomass industry.

AEG has developed a proprietary technology which transforms waste biomass material into high-value renewable fuels. Its patented product CoalSwitch® is a leading drop-in biomass renewable fuel that can be blended and co-fired with coal at any ratio without requiring significant plant modification or wholly replacing existing biomass fuels.

 

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