Active Energy Group PLC Update on production at the Ashland facility (9048T)

TIDMAEG

RNS Number : 9048T

Active Energy Group PLC

20 November 2023

20 November 2023

Active Energy Group Plc

("Active Energy" or the "Company")

Update on the status of production at the Ashland facility

Active Energy (AIM: AEG, OTCQB: ATGVF), the international biomass based renewable energy business, announces a further update on the progress of the construction, by Player Design Inc ("PDI"), of the CoalSwitch(R) fuel reference plant at Ashland, Maine (the "Ashland Facility").

Active Energy has, over the weekend, been informed by PDI that there are continuing construction and engineering delays at the Ashland Facility. Whilst construction and installation work for the new production facility has continued in recent weeks, PDI's previously announced expectation that the Ashland Facility would be in operation by no later than the end of November 2023 will now not be achieved. PDI's current estimate is that the Ashland Facility will be fully functional by the end of this quarter and production of fuel may only commence during the first quarter of 2024.

The further delay is disappointing, both to Active Energy's Board and its customers. Active Energy has potential orders for CoalSwitch Ò fuel to be delivered to customers in the US and internationally at the earliest opportunity and, under the terms of the Company's existing contract with PDI, Active Energy had placed firm orders for CoalSwitch Ò fuel with PDI a number of months ago when PDI undertook to deliver CoalSwitch Ò fuel by the end of November 2023. Active Energy continues to offer assistance to help PDI towards successful resolution of the outstanding construction and engineering issues and commence CoalSwitch Ò fuel deliveries.

Considering this further delay, the board of Active Energy no longer has confidence in the time estimates for the delivery of CoalSwitch Ò fuel provided by PDI, given that the Ashland Facility is currently 12 months late in commencement of fuel production. The board of Active Energy, working with its new US management team, has been broadening its network of production and engineering partners in the US in recent months to develop future production centres. This will not only accelerate the Company's ability to meet the projected demand for CoalSwitch(R) fuel, allowing the Company to no longer be reliant on a single production partner, but also ensure that Active Energy can supply fuels for a variety of complimentary uses.

Active Energy will update shareholders as soon as possible as this strategy unfolds, together with all future immediate developments, as reported by PDI on the Ashland Facility.

Michael Rowan, CEO of Active Energy, commented:

"We are frustrated that the Ashland Facility has not met the time deadlines, previously agreed with PDI, but we remain invigorated from the positive feedback that our new US management team is receiving to establish alternative production centers elsewhere in the US with alternative production and engineering partners. With the immediate opportunities before Active Energy for CoalSwitch(R) sales, I am confident in the future for the Company's business. We will update shareholders as soon as possible with these plans and PDI's latest updates from the Ashland Facility."

Enquiries:

 
 Active Energy      Michael Rowan (Chief              [e-mail] 
  Group Plc          Executive Officer) 
                     Michelle Fagan (Chief 
                     Financial Officer) 
 Allenby            Nick Naylor/James                Office: +44 (0)20 
  Capital Limited    Reeve/Daniel Dearden-Williams    3328 5656 
  Nominated          (Corporate Finance) 
  Adviser and        Amrit Nahal (Sales/Corporate 
  Broker             Broking) 
                   -------------------------------  ------------------------- 
 Camarco            Tom Huddart / Emily              [e-mail] 
  Financial          Hall / Lily Pettifar             Office: +44 (0)20 
  PR Adviser                                          3757 4980 
                   -------------------------------  ------------------------- 
 Scoville           John Williams                    [e-mail] 
  PR 
  US PR Adviser 
                   -------------------------------  ------------------------- 
 
 
 Website          LinkedIn                                 Twitter 
 www.aegplc.com   www.linkedin.com/company/activeenergy    https://twitter.com/aegplc 
                                                            @aegplc 
                 --------------------------------------  ---------------------------- 
 

About Active Energy Group

Headquartered in London with operations in the United States, Active Energy Group plc (AIM: AEG, OTCQB:ATGVF) is a biomass-based renewable energy company focused on the production and development of next generation biomass products that have the potential to transform coal fired power and heavy industries and the existing renewable biomass industry.

Active Energy has developed a proprietary technology which transforms waste biomass material into high-value renewable fuels. Its patented product CoalSwitch(R) is a leading drop-in biomass renewable fuel that can be blended and co-fired with coal at any ratio without requiring significant plant modification or wholly replacing existing biomass fuels.

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November 20, 2023 02:00 ET (07:00 GMT)