Active Energy Group PLC (LON:AEG) shares jumped on Wednesday as its joint venture (JV) company, AEG CEE Sp. z O.O., received market certification and environmental clearance by the Polish government for its ‘SuperFuel’ product.
The AIM-listed alternative energy group said testing by the Polish government laboratory showed that the new fuel met requirements under new AntiSmog legislation for the certification of solid fuels, and thus allowed its use both domestically and in Polish/EU coal plants due to its high calorific value, low sulphur content, low ash content, and low SOx and NOx emissions.
Watch: Polish approval for 'SuperFuel' product a 'shot in the arm' for Active Energy
Active added that the joint venture was now permitted to use the Polish government’s ‘Ecological Safety Sign’ on all of its production, with the intention to move to production and revenue generation now that the certification had been achieved.
The JV is also in the final stages of price negotiation with customers in the Slask Region of Poland and was confident of a strong economic and environmental outcome.
Richard Spinks, Active Energy chief executive, said: “This certification programme, although expected to reach approval at the time of incorporating the Joint Venture, progressed much faster than anticipated and subsequently, now that we have received all necessary certification and commercial trade marks for the commercialisation of this new 'Super Fuel', we hope to generate cash flow more quickly in Poland than originally anticipated.
He added: “Our unique Active Energy/Cobant "SUPERFUEL" has been approved by the Polish Government Laboratory as a solution that not only meets all of their requirements under the "Anti-Smog" legislation, but is safe enough not only to use in Power Plants, but right there in the homes of Polish Citizens who until today face health and environmental issues, which we will now help to improve into the future.”
In mid-morning trading, Active Energy shares were up 17.9% at 3.95p.
In a note to clients, analysts at 'house' broker Northland Capital said: "This validation for AEG is particularly applicable in Poland which has a 90% reliance on coal and lignite in energy generation and opens up significant commercial opportunities."
-- Adds analyst comment, updates share price --