London-listed Active Energy Group (AIM:AEG) has received its inaugural CoalSwitch™ licence agreement with Canada-based forestry and environmental firm, RMD Environmentals.
The biomass-focused company said the agreement was for the development and management of projects using the CoalSwitch™ technology in the Alberta and British Columbia provinces.
Active Energy has now transferred the exclusive sale and commercial rights of CoalSwitch™ technology to RMDE where it may be applied in the territories over the next 20 years.
As part of the agreement, RMDE has paid a license fee of US$ 1.8 million to Active Energy who will subsequently receive royalty payments of US$5.00 per tonne on licensed products produced by RMDE, its clients or partners.
In respect of the installation of the CoalSwitch™ technology, plants and equipment, AEG and RMDE will jointly co-ordinate all future engineering activities.
Shares in Active Energy Group were trading 32.89% higher at 0.505p on Thursday afternoon.
It is anticipated that RMDE will commission its first plant within the next 18 months, subject to environmental and other permitting processes being finalised.
Active Energy’s Chief Executive, Michael Rowan, said the group’s first licence was a “significant strategic milestone” alongside the company’s current focus on the commercial roll-out of CoalSwitch™.
Rowan acknowledged that RMDE was the group’s first licensed partner, and that the Directors believe collaborations of this kind will expedite the commercial roll-out of CoalSwitch™.
He said, "To capitalise on these opportunities, AEG recognises that it needs to accelerate market development through the construction of operating, high volume, production facilities in various regions.”
That, Rowan commented, would be achieved both through wholly-owned production facilities, such as the Lumberton site in North Carolina and commercial partnerships worldwide.
Active Energy revealed that it has already kick-started discussions with other potential licensees for the use of CoalSwitch™ technology across other territories.
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