Active Energy Plc (LON:AEG) says it's increased its revenue potential in Ukraine as it struck a forestry deal with a regional government in the country.
The memorandum of understanding covers around 186,500 hectares of mature trees in northern Ukraine.
Chief executive Richard Spinks said: "We will be able to work in tandem with the government to utilise these forests' asset value to the full, from commercial logging to demolition wood waste and wood process by-products including bark, sawdust and thinning.
"We believe that this will be the first of a number of agreements within Ukraine and it represents an important milestone for Active Energy's operations within the country and the region."
Notably, the MoU will also allow for increased use of forest waste, which is currently just burnt in situ, but could be used to produce AEG CoalSwitch's innovative fuel replacement product.
The firm has been publicising its CoalSwitch technology in recent months - an environmentally-friendly process that cleanses raw biomass from contaminants that harm the atmosphere and damage power plant furnaces and can be burned in coal fired power stations, or alongside coal. This gets rid of the need for an expensive conversion.
In today's statement, Active said it envisages a facility to manufacture AEG's CoalSwitch product being constructed close to the forestry, to create the supply of the product to the region's existing coal-fired power plants.
Active Energy shares shed 1.64% to 3p each.