In a statement ahead of today’s shareholder meeting Active Energy Group PLC (LON:AEG) chief executive Richard Spinks told investors there is a firm foundation for the company to expand, grow market share and enhance its financial performance.
"We continue to make sound progress in building our business which now comprises of three standalone but highly complementary divisions,” Spinks says.
AEG WoodFibre, currently the core revenue generator for the group, is now well established some three years from start-up and Spinks highlights it is growing in line with management expectations.
Presently it has capacity to process 3,000 tonnes of raw material a day, and it is set for a substantial rise in capacity and will have a broader market offering.
Spinks highlighted that success thus far has led to approaches from new and existing clients regarding opportunities to supply additional jurisdictions, and the group hopes to announce more details in due course.
The AEG WoodFibre business is targeting turnover in excess of US$35mln in 2016, compared to the US$24.37mln it managed in 2015.
AEG Timberlands, a forestry operation, earlier this week inked an agreement with the authorities in Ukraine over a potential 186,500 acres of mature commercial forestry.
In the meantime, Spinks says the unit continues to see progress with the finalisation of the Metis Settlement forestry economic development and coal reduction initiative, in Alberta, Canada.
And he highlighted that the company is confident it has the support of the Alberta government - the Indigenous Affairs and Energy Alberta ministries – following what it describes as significant changes to the political landscape.
If the venture proceeds it will see some 108,000 acres developed, with revenues derived from logging and wood chipping as well as AEG CoalSwitch production from brush, waste and non-merchantable timber.
According to Spinks, the critical mass will allow us to advance discussions with existing coal-fired power generators in Alberta for its coal replacement fuel.
AEG CoalSwitch continues to see progress in the commericialisation process, Spinks noted, following positive tests at the University of Utah.
The aim is to produce one of the world's first 'drop-in' biomass fuels that could replace coal. An automated pelleting plant has been developed in Salt Lake City, Utah, and it is now able to produce commercial samples.
The first deliveries of AEG CoalSwitch product have been made to prospective commercial partners for testing in territories including the United Kingdom, Canada, Ukraine and Malaysia.