Renewable energy specialist Aggregated Micro Power (LON:AMPH) is negotiating a biofuel partnership with Forest Fuels, a major UK wood chip supplier.
The deal would see AMP help Forest Fuels with its wood chip drying and energy service company (ESCO) developments, while Forest Fuels would be the preferred supplier to biomass boilers managed by AMP.
Elsewhere, AMP has received planning consent for two 1.5Mw combined heat and power gas sits in Devon, while a £5mln biomass boiler and ESCO pipeline is scheduled to be installed in the next twelve months.
Losses widened to £6mln from £2.4mln in 2014, though Richard Burrell, chief executive, said: “Adjusted for non-cash items and one off charges our underlying performance has been broadly in line with management's expectations.”
Underlying losses were £3.2mln on revenues of £253,000.
Burrell said the partnership with Forest Fuels represented a “significant step in the development of the group, which could accelerate our strategic ambitions and, together with the operational progress of the business, allows us to look to the future with great confidence."
Finncap said: “We see this partnership as offering significant opportunities to accelerate the group’s growth.
At the group’s Low Plains site, facilities have been upgraded and re-commissioned as well as the installation of five biomass boilers.
The company also revealed that it is negotiating with investment institutions for the potential funding of the group’s development pipeline.
“AMP requires further capital to develop out its substantial pipeline of future projects as well as to invest in sites currently operated by Forest Fuels, pursuant to our proposed strategic partnership with Forest Fuels” the company said.
“We are pleased to announce that we are in discussions with investment institutions in relation to the potential funding of the Group's development pipeline. Further details will be provided to shareholders in due course.”
Broker Finncap said: “Progress continues on its CHP and boiler development pipeline that should result in a step-up in operations”.