Local government officials have said Active Energy PLC’s (LON:AEG) Canadian forestry operations will help to revitalise the sector in Newfoundland and Labrador.
Earlier this week, the Ministry of Fisheries and Land Resources of the Crown Province of Newfoundland and Labrador awarded two five-year commercial timber to Active’s Timberlands subsidiary.
The licences allow the group to cut 100,000 cubic metres a year, which it will then use to provide the raw material for its biomass technology, CoalSwitch.
Timberlands will build a US$19.7mln wood pellet plant which will produce 55,000-65,000 metric tonnes of CoalSwitch wood pellets per year.
These will then be exported to Poland – where Timberlands has an agreement with Cobant – to supplement coal use in the country’s residential heating market.
The project, which is to be built in the Hawkes Bay area, is expected to create at least 25 full-time positions associated with plant operations, and 30-50 positions in harvesting and trucking.
Win-win for all parties
“By issuing these permits, we are on the path to revitalizing the Great Northern Peninsula's rich and storied industry and the treasured resource that sustains it to support a better future for Newfoundland and Labrador,” said Minister of Fisheries and Land Resources Gerry Byrne.
Timberlands managing director Richard Spinks added: “This agreement is a significant achievement for the Company and for the Province of Newfoundland and Labrador, and will reap rewards for all parties in the years to come.
“We look forward to becoming part of the community on the Great Northern Peninsula and working with stakeholders to provide positive economic opportunities as we rebuild this important industry together.”
Shares surged 21% to 1.7p at the opening bell on Friday.