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Energy

Active Energy shares advance as Italian supply deal ends

Active Energy (LON:AEG) shares moved higher as it said its Italian biomass supply contract had come to an end.

It was in August, 2013, that the group announced it had landed the deal to provide wood chip to Biomasse Italia SpA from Montenegro but now it has assigned the balance of the contract to an "unrelated" third party, it said.

That means Active will have no further revenues or costs associated with the deal.

It means the group can now focus on its rapidly-expanding high-margin Ukrainian operations and on its Canadian forestry and natural resources joint venture, which is developing in excess of 250,000 hectares of lands, it said.

In 2013, Active said Naples-based Biomasse Italia was one of Europe’s largest biomass energy providers - with a capacity of 500 gigawatt hours, and it requires around 700,000 tonnes of biomass material each year.

Active shares added 6.25% to 7.225p.

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