Active Energy Group reaches Agreement in Principle for forest management and timber licence in Canada
Active Energy Group Plc, a UK-headed renewable energy, forestry management and timber processing business has announced that it has entered into an "agreement in principle" with the Canadian Province of Newfoundland and Labrador. If finalised, the deal will provide Active Energy and its affiliate Timberlands International plc (Timberlands), with a Crown timber licence and forest management agreement relating to two Forest Management Districts covering 1.2 million hectares (ha).
According to a statement, Active Energy Group (AEG) has entered into an “agreement in principle” with the Province of Newfoundland and Labrador, Canada, that if finalised will provide Active Energy and its affiliate, Timberlands International plc (Timberlands), with a Crown timber licence to harvest and utilise up to 140 000 m3 of wood per annum and a 20-year forest management agreement relating to two Forest Management Districts.
The two forestry management districts have a total land area of 1 211 000 hectares on the Northern Peninsula of the Province, proximate to ocean port facilities, with direct access for shipping routes to Europe.
In addition, both parties are evaluating a number of other collaborative opportunities for both Timberlands and Advanced Biomass Solutions plc, another affiliate company of AEG, involving timber processing and the commercialisation of AEG’s CoalSwitch advanced biomass coal replacement fuel product.
AEG, through its recently incorporated affiliate company Timberlands International, is focused on the sustainable management and utilisation of under-developed and under-valued forestry assets. As part of the agreement, it aims to introduce international forestry and environmental standards of sustainable forestry management, to improve the value and yield of the forests included in the agreements.
This will be achieved through the implementation of more efficient logging practises and technologies and the use of merchantable timber and through market optimisation. This includes chipping and the production of biomass fuel as well the CoalSwitch product. The latter utilises primarily forestry waste, bark, sawdust and thinnings, which according to AEG, significantly increases the economic returns of the forests.
The proposed agreement with the Province of Newfoundland and Labrador represents an important step in the overall strategy for Timberlands in achieving a new and significant partnership in Canada. The Province has been clear in its commitment to the safeguarding and improvement of the regional economy whilst continuing to protect the existing environmental landscape. Through the Province’s association with our group of companies, I am confident that we can deliver material benefits for all stakeholders by unlocking the value of under-utilised forestry assets, through supporting and enhancing the Province’s environmental and sustainability criteria, whilst developing commercial benefits in an environmentally friendly fashion, said Richard Spinks, CEO of Active Energy.