ALTER ENERGY GROUP AG (“AEG”) (GXG Ticker Symbol: AEGC) announces it has signed an LOI for the acquisition of an operating US Wood Pellet Plant (WPP).
Edward J. Klaeger IV, CEO of AEG explained, “The acquisition of this operational WPP gives AEG an ideal entry point into the high growth, high margin US Wood Pellet Export Market. Our plan is to export the initial 110,000 MT/a wood pellets to EU Markets for the upcoming heating season and increase capacity to 280,000 MT/a in Stage II during the 2015 summer off-season.
The expansion will increase economies of scale and help meet the rising demand for wood pellets in the EU as well as the domestic market, which is expected to grow significantly in the coming years as the US brings more renewable energy sources online to meet its emission reductions targets. This acquisition can create near-term cash flows to help drive earnings and enhance our share price valuations for AEG to leverage into more acquisitions in the US and EU as well as high growth emerging markets”.
AEG has also been active in the Ukrainian pellet industry. The company is involved with two operating pellet mils in western Ukraine and owns a biomass logistics and processing company in northern Ukraine, where the company also targets additional production.
AEG is a Zurich Switzerland based publicly traded company with current activities in Europe and the US. AEG acquires, and invests in renewable energy projects and companies.