Forestry asset management and development for timberland owners and operators

In a further expansion of its business activities across the entire timber supply chain, Active Energy Group has entered into an innovative joint venture with three Métis Settlements of Alberta, Western Canada, to exclusively commercialise in excess of 300,000 hectares (circa 750,000 acres) of forestry assets owned by them.  The forests are projected to contain more than 35 million m3 of mature standing timber, as well as low-grade timber suitable for a range of industrial applications.

The primary aims of the joint venture - the Group’s involvement in which is being managed via its AEG TimberLands division -are to utilise, in a sustainable and responsible manner, the Métis forestry assets to produce Biomass-based renewable energy fuel using the Group’s AEG CoalSwitch technology; to assist the Province of Alberta in reducing its dependence on highly-polluting coal-fired power generation; and to create a positive investment environment and significant economic development opportunities for the Métis Settlements and their members.

After completing an extensive due diligence programme, the AEG TimberLands and Métis joint venture partners have developed a detailed Forestry Management Plan, to include stewardship and management of the valuable forestry assets, as well as a number of environmentally-sensitive commercialisation strategies.  The Plan - which was compiled in association with a world-leading forestry management consultancy, and complies with Albertan, Canadian and international best practices - will, for example, include identifying any culturally- or ecologically- sensitive sites.

Alongside constructing and operating a plant for on-site production of AEG CoalSwitch Biomass coal replacement fuel, other commercial options under consideration for the Alberta Métis economic development project include providing timber for a range of sawmill and industrial applications.

Following a Government of Alberta review of the Métis Settlements’ participation in the joint venture, a Ministerial Order was issued in September 2015, specifying certain conditions to be fulfilled by them for the venture to proceed.  Since that time, the AEG TimberLands team has been liaising with their Métis partners, professional advisors and government representatives to ensure that the joint venture - a new structure for which has been formed - complies with all necessary conditions; and in December 2015 the Group announced that it is optimistic that a fourth Métis Settlement will join it in the near future.

The AEG TimberLands team intends that this pioneering joint venture will be a model for further agreements with public and private forestry owners worldwide, enabling them to work together to value, develop and commercialise timber assets in an environmentally responsible and sustainable manner, in accordance with international forestry stewardship criteria.

Commercial options include selling long-term tree farming permits with long-term cutting rights to independent timberland investors and timber industry firms, joint venture arrangements with third parties to create on-site logging and processing operations, and utilising low-grade timber and forestry thinnings for local production of AEG CoalSwitch coal replacement fuel.

Additionally, Active Energy Group is currently developing an innovative strategy to work with investment partners to fully exploit forestry assets by constructing and operating on-site Biomass-fuelled power plants to provide electricity to local, regional and national electricity grids.  Full details of our progress with this ground-breaking project will be published at regular intervals.

For more information on AEG TimberLands and how we may be able to work together, please complete our Contact Us form, or email Richard Spinks, Active Energy Group CEO, at richard.spinks@active-energy.com.

And to find out more about Active Energy Group’s other products and services, please select an option from the ‘Business Units’ menu above, or click on one of the links below:

AEG WoodFibre
AEG CoalSwitch