Active Energy announces that its subsidiary, Timberlands International Limited (‘Timberlands’), has signed a Memorandum of Understanding (‘MoU’) to acquire a controlling interest in PowerWood Canada Corp, a privately owned Canadian company.
Richard Spinks, Active Energy CEO, said: “The MoU will see us utilise at least 300,000 tonnes of fibre annually and highlights the scale of the opportunities available to the Group. We believe we have an excellent platform in place from which to scale up our activities and build Active Energy into a leading producer of environmentally friendly, second generation biomass fuels worldwide. I look forward to providing our shareholders with further updates in due course.”
Under the terms of the MoU, which is subject to a formal contract, Timberlands will acquire a controlling interest in PowerWood Canada based in Alberta, Canada from PowerWood Limited.
PowerWood Canada holds several Forestry Management Agreements registered with the Province of Alberta in Canada and Deciduous Cutting Rights issued by the Crown. These allow it to harvest and utilise in excess of 300,000 tonnes annually of merchantable timber and biomass and forestry residues from a total forestry area of approximately five million hectares of established natural forestry in Northern Alberta.
As part of the proposed agreement and subject to available funding, Active Energy will build an initial 25 tonnes per hour CoalSwitch™ plant at the site; this will produce the Company’s unique biomass fuel pellet. Offtake agreements are in place subject to production starting.
