Active Energy enters agreement with Newfoundland and Labrador
Active Energy (AEG) has entered into an agreement in principle with the Canadian province of Newfoundland and Labrador, which would provide the company and its affiliate, Timberlands, with a Crown timber licence and forest management agreement related to two Forest Management Districts covering 1.2 million hectares.
Both parties are considering other potential joint ventures, including opportunities for Advanced Biomass Solutions, another AEG affiliate. The proposed collaboration with Advanced Biomass Solutions involves timber processing and commercialisation of the CoalSwitch product, the world’s ‘first drop in’ biomass fuel that can completely replace coal in existing coal fired power stations without the need for expensive retrofitting.
In a statement, AEG said that the crown timber licence and proposed 20-year forestry management agreement is to harvest and utilise up to 140,000 solid cubic metres of wood annually from Forestry Management Districts 17 and 18. The agreement would facilitate the management and assessment of multiple commercial possibilities for the forests, including commercial logging, saw log merchandising, chipping and the production of biomass products utilising forestry waste.
AEG and the Province both hope that the introduction of a broader based commercial model will contribute to revitalising the local economy.