REG - Active Energy Group - Business update for Q1 2023

Active EnergyAnnouncement

31/03/2023 07:00

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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/ (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)                                 info@aegplc.com

                                Michelle Fagan (Chief Financial Officer)
 Allenby Capital Limited        Nick Naylor/James Reeve/Daniel Dearden-Williams (Corporate Finance)   Office: +44 (0)20 3328 5656

 Nominated Adviser and Broker   Amrit Nahal (Sales/Corporate Broking)
 Camarco                        Tom Huddart / Emily Hall / Lily Pettifar                              aeg@camarco.co.uk

 Financial PR Adviser                                                                                 Office: +44 (0)20 3757 4980
 Scoville PR                    John Williams                                                         jwilliams@scovillepr.com

 US PR Adviser

 

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