24th Oct 2014 07:06
LONDON (Alliance News) - Active Energy Group PLC Friday said it had completed the forestry sampling programme at its new Canadian joint venture site, and has started marketing the first round of permits.
In July, the biomass supplier had entered a joint venture with three indigenous aboriginal Canadian groups to exclusively commercialise mature forestry assets in Alberta, Western Canada. It has a 45% equity interest in the joint venture, called KAQUO Forestry & Natural Resources Development Corporation.
"The group now estimates that the forestry which KAQUO has the right to commercialise amounts to in excess of 250,000 hectares, 108,147 hectares of which it has identified as being the most commercially attractive," Active Energy said in a statement Friday.
After completing the forestry sampling programme and confirming the quality of the timber, KAQUO has started marketing permits for the 108,147 hectares. Those permits will be granted after all applicable legal and regulatory processes are satisfied.
"As a pre-requisite to any permit being granted, investors will be required to satisfy certain conditions, including implementation of, and adherence to, short- and long-term sustainable forestry stewardship practices to replenish stocks for the future. In addition, issuance of permits will require a commitment to local employment and community welfare, as well as abiding by all applicable Métis Settlements and Alberta provincial environmental and forestry regulations," Active Energy said.
It added that it will soon be conducting a roadshow on behalf of KAQUO to prospective investors in Asia, the Middle East and the US to market either a single permit for the entire area of 108,147 hectares, or several permits covering in excess of 27,000 hectares each.
"The permits are expected to be granted for an upfront fee, and KAQUO will then look to work closely with investors to support their commercial activities, potentially providing local labour and expertise," Active Energy Chief Executive Richard Spinks said.
"Longer term, there may also be opportunities for KAQUO to act as a primary off-taker for surplus timber as part of possible plans to develop a Biomass power station on Métis land in Alberta," he added.
Active Energy shares were up 5.9% at 3.04 pence early Friday.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Active Energy