U.K. company Active Energy has entered an agreement-in-principle with the provincial government for a timber licence and forest management agreement on the Northern Peninsula.
The agreement is related to two forest management districts covering 1.2 million hectares. Both parties are also evaluating a number of other collaborative opportunities for both Active Energy affiliates Timberlands and Advanced Biomass Solutions involving timber processing and the 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.
· Crown timber licence and proposed 20-year forestry management agreement (the “Agreement”) to harvest and utilise up to 140,000 solid cubic metres of wood annually from the Forestry Management Districts 17 and 18 within the Province;
· 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;
· The Agreement will 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;
· Timberlands is developing relationships with existing companies engaged in forestry operations and saw milling activities, on the Northern Peninsula and surrounding areas, to cooperate with them on further timber related operations and fibre exchanges;
· The Province and AEG envisage that the introduction of a broader based commercial model will contribute to revitalising the local economy; and
· The Agreement is in line with Active Energy’s strategy to commercialise timberland operations through its newly incorporated affiliate, Timberlands.