REG - Active Energy Group - Update on production at the Ashland facility

Active EnergyAnnouncement

20/11/2023 07:00

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RNS Number : 9048T  Active Energy Group PLC  20 November 2023

20 November 2023

Active Energy Group Plc

("Active Energy" or the "Company")

Update on the status of production at the Ashland facility

Active Energy (AIM: AEG, OTCQB: ATGVF), the international biomass based
renewable energy business, announces a further update on the progress of the
construction, by Player Design Inc ("PDI"), of the CoalSwitch® fuel reference
plant at Ashland, Maine (the "Ashland Facility").

Active Energy has, over the weekend, been informed by PDI that there are
continuing construction and engineering delays at the Ashland Facility. Whilst
construction and installation work for the new production facility has
continued in recent weeks, PDI's previously announced expectation that the
Ashland Facility would be in operation by no later than the end of November
2023 will now not be achieved.  PDI's current estimate is that the Ashland
Facility will be fully functional by the end of this quarter and production of
fuel may only commence during the first quarter of 2024.

The further delay is disappointing, both to Active Energy's Board and its
customers.  Active Energy has potential orders for CoalSwitchÒ fuel to be
delivered to customers in the US and internationally at the earliest
opportunity and, under the terms of the Company's existing contract with PDI,
Active Energy had placed firm orders for CoalSwitchÒ fuel with PDI a number
of months ago when PDI undertook to deliver CoalSwitchÒ fuel by the end of
November 2023. Active Energy continues to offer assistance to help PDI towards
successful resolution of the outstanding construction and engineering issues
and commence CoalSwitchÒ fuel deliveries.

Considering this further delay, the board of Active Energy no longer has
confidence in the time estimates for the delivery of CoalSwitchÒ fuel
provided by PDI, given that the Ashland Facility is currently 12 months late
in commencement of fuel production. The board of Active Energy, working with
its new US management team, has been broadening its network of production and
engineering partners in the US in recent months to develop future production
centres.  This will not only accelerate the Company's ability to meet the
projected demand for CoalSwitch® fuel, allowing the Company to no longer be
reliant on a single production partner, but also ensure that Active Energy can
supply fuels for a variety of complimentary uses.

Active Energy will update shareholders as soon as possible as this strategy
unfolds, together with all future immediate developments, as reported by PDI
on the Ashland Facility.

Michael Rowan, CEO of Active Energy, commented:

"We are frustrated that the Ashland Facility has not met the time deadlines,
previously agreed with PDI, but we remain invigorated from the positive
feedback that our new US management team is receiving to establish alternative
production centers elsewhere in the US with alternative production and
engineering partners. With the immediate opportunities before Active Energy
for CoalSwitch® sales, I am confident in the future for the Company's
business. We will update shareholders as soon as possible with these plans and
PDI's latest updates from the Ashland Facility."

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.

Active Energy 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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