Active Energy Group Plc updated shareholders on the status of future production at the CoalSwitch® fuel reference plant being constructed at Ashland, Maine (Ashland Facility) by Player Design Inc. and its associates (PDI). Since the company's announcement on 20 November 2023, Active Energy has been in discussions with PDI and its associates in an effort to understand and resolve construction issues announced on that date and to secure commitments from PDI delivery dates of CoalSwitch® fuel. The company's announcement of 20 November 2023 followed a series of delays at the Ashland Facility which the Company has previously disclosed and are summarized in the Appendix to this announcement.

To date these discussions have proven to be unproductive and PDI has now informed Active Energy that PDI is no longer willing or able to commit to either: i) a future production date for CoalSwitch® fuel; or ii) future production volumes of CoalSwitch® fuel. This recent development is hugely disappointing for Active Energy, who have several potential customers lined up to receive CoalSwitch® fuel at the earliest opportunity. The company retains ownership of some of the production equipment and components being used in the construction of the Ashland Facility.

Throughout 2023, Active Energy has been actively marketing CoalSwitch® fuel to a range of potential customers, including companies operating in the pulp and paper, cement, and power generation industries. These conversations have reinforced the Board's view that there is significant market appetite for CoalSwitch® fuel. Notwithstanding the production delays and the failure of PDI to produce CoalSwitch® fuel at the Ashland Facility, this customer interest remains, and the Board is now looking for the most expedient way to commence CoalSwitch®fuel production, using its proprietary technology in North America or Southeast Asia.

Since the announcements in the Interim Results in September 2023, Active Energy has focused on improvements to both CoalSwitch® fuel and the production processes. The Company had announced, at that time, a working partnership with Omega Thermal Solutions Group LLC, based in the US, to develop a new manufacturing process and create variants of CoalSwitch® fuel focusing on a torrefaction production process. The improved performance metrics, such as higher fixed carbon content allows these biocarbon fuels to participate in the growth markets such as soil amendments, air filtration, ferro silicon and the metallurgical steel industries.

This product development, assisted by the recently appointed US management team is opening new revenue opportunities. Once the Company has received the monies it is owed by PDI, it will have sufficient cash resources to progress the next stage of its strategy.