Biomass energy outfit Active Energy Group (AIM:AEG) has signed a joint venture deal in Canada to develop forestry.
Active Energy Group, the specialist in supplying wood chips for power, reported on a new joint venture to develop forestry assets in Alberta in Western Canada. The AIM-quoted company reported that it would be carrying out the work in conjunction with three indigenous aboriginal Canadian group, including the Paddle Prairie and East Prairie Group and the Grand Chief of the region Ronald Derrickson.
As part of the deal a joint venture company known as the KAQUO Forestry and Natural Resources Development Corporation was formed, which will be representing the interests of the indigenous groups. Active has a 45 per cent stake in this newly formed company and its current CEO will be the president of KAQUO.
In total it estimates that approximately 250,000 hectares of land should be commercially viable to the company, with Active noting that it already has good road and rail infrastructure.
CEO Richard Spinks noted that the initial estimates at the site were ‘on the conservative side’ with sampling at the site showing that the assets ‘contain good quality timber, with access to rail and road infrastructure’. He argued that the project should be able to generate ‘significant value’ for its indigenous partners in the region.