Proposed UAE Joint Venture
Active Energy Group plc has entered into a non-binding Memorandum of Understanding with two United Arab Emirates-based partners to explore a joint venture focused on digital infrastructure operations and Bitcoin mining. This proposed joint venture aims to support the scalable growth of Active Energy's UAE digital infrastructure platform by leveraging the technical, operational, and commercial expertise of its partners, thereby enabling expansion without a material increase in head office costs. The company will lead strategy, project development, and capital securing, while partners will manage day-to-day operations, infrastructure, and client acquisition. This initiative aligns with Active Energy's capital-efficient growth strategy through partnerships, with further announcements pending definitive agreement completion.
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| Active Energy Group plc (AIM: AEG | OTC: AEUSF), the renewable energy and digital infrastructure company, is pleased to announce that it has entered into a non-binding Memorandum of Understanding ("MOU") with two existing United Arab Emirates ("UAE")-based partners to explore the formation of a proposed joint venture ("JV") focused on digital infrastructure operations and related Bitcoin mining in the UAE. |
Under the proposed JV framework, Active Energy would lead overall strategy, project development, energy optimisation and performance oversight, as well as the structuring and securing of growth capital, where appropriate, through a combination of equity and debt markets.
One of the proposed UAE JV partners is an established regional operator with deep technical and operational expertise in digital infrastructure, including hosting and AI-focused compute environments. This partner would be responsible for day-to-day technical operations, infrastructure management and optimisation of hosting performance across the JV's facilities.
The second proposed UAE JV partner has extensive international relationships with hosting and digital infrastructure clients, together with a well-established sales and commercial platform. This partner is expected to support client acquisition, capacity marketing and utilisation, and to assist in securing demand for any newly developed capacity as the platform scales.
The proposed JV is intended to support the efficient and phased expansion of Active Energy's UAE digital infrastructure platform in line with the Group's previously stated medium-term capacity objectives. Initial activities are expected to focus on supporting the operation and optimisation of existing capacity and near-term development phases, with further expansion subject to market conditions, capital availability and client demand.
The Company views the JV structure as a key mechanism to enable growth without the need to materially increase head office costs or central operational resources. By leveraging the technical, operational and commercial capabilities of its partners, Active Energy aims to maintain a lean central cost base, while ensuring that execution capability scales in line with project development.
This approach is consistent with Active Energy's broader business model of forming partnerships and joint ventures with strategically aligned companies to deliver growth in a capital-efficient manner, sharing execution responsibilities and potential upside, while preserving balance sheet flexibility.
The MOU is non-binding and subject to the completion of definitive agreements. A further announcement will be made in due course should the discussions progress.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.