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SIMEC Atlantis Energy surges following Uskmouth power project update

In 2017 Atlantis entered into a strategic partnership with SIMEC, a member of the GFG Alliance, to convert the Uskmouth power plant to use an end-of-waste energy pellet as fuel. The plant is expected to enter commercial operations in 2020
Uskmouth power project
The converted plant will sell its power to GFG Alliance companies under two 20-year power purchase agreements

Tidal power and renewable energy group SIMEC Atlantis Energy Limited (LON:SAE) has made substantial progress on its Uskmouth power station conversion project.

The coal-fired Uskmouth power plant in Wales, jointly owned by SIMEC Energy and N&P is to be converted so it can use energy pellets (Subcoal pellets) composed of waste materials that would otherwise be destined for landfill.

Atlantis and its project partner SSF have conducted successful pellet milling trials in the Netherlands aimed at adapting the pellets to a form that is ideally suited for the Uskmouth plant.

 

The final milled product undergoes particle size reduction prior to combustion within a pulverised fuel furnace, which aids more efficient and complete combustion.

The company said that the environmental planning and permitting contract for Uskmouth has been awarded to RPS Group PLC (LON:RPS).

"Our energy and resource management infrastructure are being transformed, owing to the need to decarbonise to meet climate change and carbon budget goals. This is one of the few areas where successive governments have provided strong, consistent policy support,” said Dan Smyth, the director of major infrastructure projects at RPS.

“RPS's consenting experts have an unrivalled track record of advising our clients on major infrastructure projects in energy and we have helped shape and secure numerous sites and high volumes of new capacity,” he added.

READ SIMEC Atlantis Energy on "a trajectory of rapid growth"

Meanwhile, Atlantis has been awarded the management services agreement by N+P Group in relation to the consenting process for the pellet plant that is to be built adjacent to the Uskmouth power plant.

Lars Jennissen, technical director of the N+P Group, said a lot of work was done over the summer on the quality of the pellets to ensure that they meet the standards required by power stations.

N+P will source more than 1.3mln tons of non-recyclable paper and plastic waste that will be used at three production locations throughout the UK. These production locations will jointly produce more than 900,000 tons of Subcoal pellets that will save roughly 800,000 tons of carbon dioxide emissions a year.

"We hope to copy the concept from Uskmouth to power stations worldwide," said Jennissen.

Tim Cornelius, the chief executive officer of SIMEC Atlantis, said the work the company is completing in conjunction with N+P will deliver an alternative fuel pellet that is expected to be “very disruptive in the waste-to-energy and alternative fuel sector”.

“A high energy pellet that burns as clean as natural gas and is capable of addressing the world's non-recyclable waste problem whilst providing baseload generation and balancing services to the grid to facilitate deeper penetration of renewables is one of the most exciting developments in power generation in the last decade,” he asserted.

"The important work we are doing in alternative fuel development will also have implications on the power supply for the steel, cement and petrochemical industries. Our super pellet will underpin the growth of our conversions business worldwide as we seek to deliver low emission, subsidy-free baseload generation using non-recyclable plastic and commercial and industrial waste as our feedstock," Cornelius said.

Shares in Atlantis were up 9.8% at 16.2p in early deals.

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