TIDMAEG
RNS Number : 9624D
Active Energy Group PLC
15 October 2018
Active Energy Group Plc / EPIC: AEG / Sector: Alternative
Energy
15 October 2018
Active Energy Group Plc ('Active Energy', 'AEG', the 'Company'
or the 'Group')
Joint Venture Agreement with Georgia Renewable Power LLC
Active Energy, the London quoted international biomass based
renewable energy and forestry management business, is pleased to
announce that it has entered into a joint venture agreement to
instal CoalSwitch facilities with Georgia Renewable Power LLC
("GRP"), a US company that maintains three biomass-to-energy power
plants located in North Carolina and under construction in Georgia,
U.S., with a total power generation capacity of approximately 165
Megawatts (MW).
Overview
-- Under a Joint Venture Agreement (the "JV") Active Energy
Renewable Power LLC has been incorporated to advance the commercial
development of CoalSwitch(TM) fuel into operational power plants,
develop organic waste fertilizer products and utilise the Company's
existing CoalSwitch(TM) and PeatSwitch(TM) technologies for
complementary sales of biomass
-- JV will leverage the significant synergies between GRP and
AEG's businesses including GRP's established steam and drying
infrastructure at its power plants and allow AEG access to its
surplus biomass feedstock
-- JV intends to evaluate the potential of new feedstock
constituents for CoalSwitch(TM) including poultry litter - to
create a new product, LitterSwitch(TM)
-- Initial CoalSwitch(TM) plant to be installed at GRP's
existing power plant facilities at Lumberton, North Carolina,
before the end of 2018, followed by the two additional plants in
Georgia over 36 months
-- The JV intends to install up to 100 tonnes per hour of CoalSwitch(TM) production facilities
-- AEG is currently negotiating off take agreements for the
sales of both CoalSwitch(TM) and biomass sourced from existing GRP
facilities
Joint Venture - Active Energy Renewable Power LLC
Active Energy Renewable Power LLC has been incorporated in North
Carolina for the purposes of the JV and is owned equally between
the Group and GRP. The JV will install CoalSwitch(TM) manufacturing
facilities at each of GRP's biomass-to- energy power plant sites in
North Carolina and Georgia.
The first installation will be at Lumberton in North Carolina.
The plant will utilise some existing facilities and equipment
currently owned by AEG at its site in Utah. The intention is to
commence work immediately with the aim to have commercial
production facilities installed by the end of Q4 2018. The
installation will be assisted by the use of GRP's existing steam
and drying capacity at its power plants. In addition, the JV will
be able to take advantage of GRP's existing infrastructure for
feedstock procurement. The JV intends to double the production of
CoalSwitch(TM) at this facility to 10 tonnes per hour during H1
2019.
Following the initial installation of this CoalSwitch(TM) plant,
the JV intends to build two additional CoalSwitch(TM) facilities at
each of GRP's other biomass-to-energy power plant locations in
Carnesville, Georgia and Colbert, Georgia. Each of these plants are
currently under construction and are targeted to be commissioned by
mid-2019 and the JV intends to install 25 tonne per hour
CoalSwitch(TM) facilities at each site in the coming 36 months. The
JV aims to expand the Company's CoalSwitch(TM) production capacity
up to 100 tonnes per hour in the region, dependent on feedstock
availability and market opportunity.
The JV also intends to work on a number of additional projects.
The JV is looking to further develop the CoalSwitch(TM) product to
include the creation of LitterSwitch(TM) pellets (a beneficiated
pelletised fuel derived from poultry litter). A research and
development programme is being developed for this. Further, the JV
will look at the creation of additional products including
fertilizers based on Peatswitch(TM) organic matrix and technology
along with inert by-products from the biomass power plants and
mineral rich by-products from the CoalSwitch(TM) process.
Finally, the JV will develop a commercial market, through AEG,
for high density baled dry wood chips, meeting the specifications
required by the EU regulations for the import of wood products, and
other biomass products such as dried bedding chips, developed by
GRP.
The JV will use for this scope GRP's drying facilities,
effectively recovering the waste heat from the power plants and
greatly reducing the carbon footprint of the production chain.
Michael Rowan, Chief Executive of Active Energy, said, "This is
an important development for Active Energy, which we believe will
result in a significant increase in CoalSwitch(TM) and
PeatSwitch(TM) production capacity in the US, the diversification
of AEG's activities in terms of both geography and feedstock, and
additional revenue streams through biomass trading.
"This agreement will shorten the time scales for large scale
commercialisation of our CoalSwitch(TM) and PeatSwitch(TM) products
and will also allow AEG to benefit from the experience and the
presence of our partner GRP, thus strengthening our capabilities in
the next operational phase of our business plan.
"We are delighted to be working with the GRP team who have been
instrumental in the commercialisation and adoption of
biomass-to-energy power generation in south-east U.S. We believe
the clear synergies between GRP's business and ours make a
compelling proposition and together we look forward to leveraging
the benefits of our unique CoalSwitch(TM) and PeatSwitch(TM)
technologies to develop into new markets.
"In particular, the environmental and health hazards associated
with poultry litter have been well documented, and the opportunity
to apply our revolutionary and proprietary technology to harness
and remove the damaging characteristics of this substance and
produce a carbon neutral and low emission fuel, is particularly
exciting and will, I believe, have global appeal.
"I look forward to providing further updates as we install the
first CoalSwitch(TM) plant at GRP's Lumberton facility in North
Carolina in the coming weeks."
Dave Schafer, Chief Operating Officer of GRP, said, "I am very
pleased to have concluded the joint venture with AEG and achieve
the opportunity to participate in the commercialisation of both the
CoalSwitch(TM) and PeatSwitch(TM) programmes. I believe that the JV
has the potential to make a significant impact both in the US and
internationally as commercial quantities of both CoalSwitch(TM) and
PeatSwitch(TM) become available. The programme for research and
development into LitterSwitch(TM) also could provide tremendous
market opportunities."
Further Information
GRP currently owns and will operate three biomass-to-energy
power plants located in Lumberton, North Carolina; Colbert,
Georgia; and Carnesville, Georgia, (each a 'GRP Site") for a total
installed power supply of around 165 MW.
Among other biomass fuels, the Lumberton power plant facility
utilises poultry litter as a fuel source and GRP wishes to work
with AEG through the JV to examine new biomass fuel opportunities
using poultry litter and create LitterSwitch(TM).
GRP currently has access to fibre feedstock of up to 2 million
tonnes per year, well in excess of its current internal consumption
requirements. In addition, GRP has access to additional supplies of
wood chips and process technology for the energy markets and is
seeking with AEG through the JV to commercialise new revenue
opportunities.
AEG has developed a proprietary process and technology,
CoalSwitch(TM) and PeatSwitch(TM), to produce a fuel pellet and a
carbon substrate for fertilizers.
AEG is seeking to deploy CoalSwitch(TM) and PeatSwitch(TM)
production capacity in the USA and Canada for sales both in North
America and internationally.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**S**
Enquiries& Further Information:
Website LinkedIn
www.active-energy.com www.linkedin.com/company/activeenergy
www.aeg-plc.com
--------------------------------------
Enquiries
Active Energy Group Michael Rowan info@aegplc.com
Plc Chief Executive Officer (Active
Energy)
--------------------------------- ----------------------------
Northland Capital David Hignell / Gerry Beaney Office: +44 (0)20
Partners Limited 3861 6625
Nominated Adviser
--------------------------------- ----------------------------
Optiva Securities Graeme Dickson / Ed McDermott Office: +44 (0)20
Ltd Broker 3137 1902
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St Brides Partners Susie Geliher / Isabel de info@stbridespartners.co.uk
Financial PR Adviser Salis Office: +44 (0) 20
7236 1177
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About Active Energy Group:
Active Energy Group Plc (AIM: AEG) is a London Stock
Exchange-listed international renewable energy business based upon
forestry assets. Its model is focussed on capturing the entire
forestry value chain through sourcing, utilising and
commercialising assets, and setting a new standard in the
sustainable management and optimisation of timber resources.
The Company is led by a highly technical and commercial team
with the experience to execute its defined growth strategy and
build its visibility, primarily as a London-listed timber
opportunity with a revolutionary biomass fuel technology.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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