REG - Active Energy Group - AGM Statement and Strategic Update

Active EnergyAnnouncement

04/07/2022 07:00

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RNS Number : 1196R  Active Energy Group PLC  04 July 2022

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
UK Market Abuse Regulation. With the publication of this announcement, this
information is now considered to be in the public domain.

 

Active Energy Group Plc / EPIC: AEG / Sector: Alternative Energy

 

4 July 2022

Active Energy Group Plc

("Active Energy" or the "Company")

 

Annual General Meeting Statement and Strategic Update

 

Active Energy is holding its Annual General Meeting at 9.00am today at Novotel
London Paddington, 3 Kingdom Street, Sheldon Square, Paddington, London W2
6BD.  At the meeting James Leahy, Chairman of Active Energy, will make the
following statement:

 

"The last 12 months have been the most transformative in the history of Active
Energy. For the first time, the Company was able to: (i) produce its next
generation CoalSwitch® fuel in industrial quantities; (ii) deliver
CoalSwitch®; and (iii) demonstrate to prospective customers worldwide its
competitive and environmental advantages.

 

"In 2022 the Company has been working closely with Player Design International
Inc ("PDI"), our strategic partner, to complete a redesign of both the
manufacturing process and the process reactors to enable production of
industrial volumes of CoalSwitch®. This redesign work has now been completed.
PDI, as a significant investor in AEG, shares AEG's focus to develop the
significant economic opportunities for CoalSwitch® and its recent commitment
toward the redesign of the CoalSwitch® plant further demonstrates this.

 

"In order to accelerate the supply of production volumes of CoalSwitch, PDI
has now committed to take full responsibility for permitting, financing and
constructing the first CoalSwitch® production plant in Ashland, Maine (the
"Ashland Facility") which PDI will own and operate.  PDI has already ordered
the parts required for the completion of the Ashland Facility and has
confirmed that first production volumes of CoalSwitch® will commence during
the first quarter of 2023.  Active Energy will sell these volumes of
CoalSwitch®, once produced, to prospective customers.

 

"Active Energy has granted relevant licenses in respect of some of its
existing intellectual portfolio ("IP") to PDI to facilitate construction of
the Ashland Facility.  Active Energy may seek to purchase the Ashland
Facility from PDI at some time in the future and any purchase would be subject
to  separate agreement and separately funded.

 

"Last week, we announced the completion of the sale of our Lumberton site in
North Carolina and this has provided the Company with USD$ 3.92 million of net
cash proceeds. This transaction has provided the Company with sufficient
working capital for the near term.  In addition to the sale of the Lumberton
site, we have also sold some additional ancillary equipment from the Lumberton
site for a minimum of $50,000 and agreed with PDI for the transfer of all
existing CoalSwitch® manufacturing equipment from the Lumberton site to the
Ashland Facility. This equipment remains the property of AEG and will be used
in the future expansion of CoalSwitch® production during 2023.

 

"We will deploy some of the funds from the sale of the Lumberton site toward
the ongoing  sales and marketing program for CoalSwitch® in North America,
Europe, Japan and South Africa.  Our focus for the remainder of 2022 will be
upon converting the numerous commercial discussions, which we are currently
having with potential customers, into firm orders for CoalSwitch®.

 

"To this end, we are now recruiting additional personnel to co-ordinate the
sales functions, both in North America and Europe. Based on feedback, the
provision of  definitive delivery schedules for CoalSwitch® will materially
assist AEG in  all its current sales negotiations  and provide greater
confidence to prospective customers of AEG's long-term commitment to supply
large scale volumes of  CoalSwitch®.

 

"The next nine months are a period of enormous opportunity for AEG. The
production process is proven and in PDI we have an excellent partner in
building, financing and operating the first CoalSwitch® facility at Ashland.
During 2022, CoalSwitch® has achieved increasing recognition as a proven,
next generation biomass fuel with strong environmental credentials and
improved heating performance. We have considerable customer interest for
CoalSwitch® and now have the working capital headroom to drive forward our
current sales negotiations into orders."

 

 Enquiries
 Active Energy Group Plc        Michael Rowan (Chief Executive Officer)                             info@aegplc.com

                                Andrew Diamond (Chief Financial Officer)
 Allenby Capital Limited        Nick Naylor / James Reeve / Freddie Wooding (Corporate Finance)   Office: +44 (0)20 3328 5656

 Nominated Adviser and Broker   Amrit Nahal (Sales/Corporate Broking)
 Camarco                        Georgia Edmonds / Tom Huddart / Emily Hall                        aeg@camarco.co.uk (mailto:aeg@camarco.co.uk)

 Financial PR Adviser                                                                             Office: +44 (0)20 3757 4980

 About Active Energy Group:

Active Energy Group plc is a London listed (AIM: AEG) renewable energy company
focused on the production and development of next generation biomass products
that have the potential to transform traditional coal fired power and heavy
industries and the existing renewable biomass industry.

AEG  has developed a proprietary technology platfrom 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
co-fired with coal, completely replace coal as an alternative feedstock
without requiring significant plant modifications or wholly replace existing
biomass feedstock resources .

Active Energy Group's immediate strategic focus is the production and
commercialisation of CoalSwitch®. CoalSwitch® is a registered trademark
belonging to Active Energy Group plc.

 

 

 

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