TIDMSAE
RNS Number : 4537F
SIMEC Atlantis Energy Limited
15 July 2019
The information contained in this announcement is inside
information under the Market Abuse Regulation (EU) No 596 / 2014.
The person responsible for arranging the release of this
announcement on behalf of SIMEC Atlantis Energy Limited is Tim
Cornelius, Chief Executive Officer of SIMEC Atlantis Energy
Limited.
15 July 2019
SIMEC ATLANTIS ENERGY LIMITED
("Atlantis" or the "Company" ")
Uskmouth 220MW Conversion Project Update
A stable flame has been achieved in testing proving the
combustion performance of 100% waste derived fuel pellets for the
disruptive Uskmouth conversion project in Wales
SIMEC Atlantis Energy Limited ("Atlantis"), the global
developer, owner and operator of sustainable energy projects
worldwide, is pleased to issue an operational update on the
conversion of the Uskmouth power station in Newport, South
Wales.
Uskmouth - which previously was coal-fired - is being converted
into a 220MW baseload power plant which will use fuel pellets
derived from waste. The pellets contain a high proportion of
plastic waste which cannot be economically or technically recycled
and so may otherwise be sent to landfill.
Key Milestones
-- The Uskmouth conversion project is on track to commence operations
by 2021
-- Front End Engineering Design ("FEED") tests and studies have been
successfully completed by the FEED partners WSP, RJM and SSF*:
-- A stable flame has been achieved in medium scale testing,
proving the stable combustion of 100% waste derived
fuel pellets
-- These results correlate to the computational fluid dynamics
model and confirm a stable self-sustaining flame with
combustion performance within expected parameters
-- A contract tender has been issued for the design, supply, installation
and commissioning of the full combustion system, including large
scale combustion testing
-- A review of the plant life extension and return to service for all
areas of the existing plant has been completed by WSP and RJM, enabling
the commencement of intrusive return to service surveys for the
220MW conversion
-- In June, N+P Group started commissioning a new pellet facility in
Teesport, England, which is capable of supplying fuel to Uskmouth
power station (three further UK facilities are planned to also supply
fuel to the project)
-- Environmental planning and permitting for the project is progressing
well and the project has now reached a design freeze for Environmental
Impact Assessments, which is a critical milestone in the planning
application process
Next steps
-- An industrial scale fuel production run and milling test will take
place in H2 2019
-- The contract for the combustion system will be awarded in H2 2019
after which industrial scale combustion tests are expected to be
carried out
-- A comprehensive intrusive inspection and testing programme for the
return to service works will be undertaken through Q3 and Q4 2019
-- The appointment of financial advisers is expected in Q3 2019 to
advise on the financial close of the conversion project which has
an estimated capital cost of approximately GBP185m
-- A full contract tender for the remaining conversion works is to
be issued in Q1 2020
-- Following the design freeze, the planning permission and permitting
applications are under development with submission targeted by end
of the year
Key facts
-- The project is the world's first conversion of a coal fired power
station to use waste derived fuel and is expected to generate 220MW
of baseload electricity
-- It is one of the largest waste to value projects currently under development
in Europe
-- The project is expected to cost approximately GBP185m and will extend
the operational life of the Uskmouth power plant by 20 years
-- Following conversion, Uskmouth will use approximately 900,000 tonnes
per annum of fuel pellets derived from waste which might otherwise
have been sent to landfill
-- Over the 20-year life of the project it is estimated that this will
amount to waste with a volume equivalent to more than 46,000 Olympic
sized swimming pools, or a landfill site the size of London to a depth
of 73 meters
David Taaffe, Director of Project Delivery at SIMEC Atlantis
Energy, commented:
"We are extremely pleased with the progress being made at the
Uskmouth conversion project which is on track to become operational
in 2021.
"Today we are announcing a significant milestone for the
project. FEED tests and studies have been successfully completed,
with the largest test burn of the waste derived fuel pellets
completed to date, and tenders have been issued for the next phase
of the conversion.
"Once operational, Uskmouth is expected to generate 1,500GWh of
sustainable energy every year, enough to power just under 500,000
UK homes. The new fuel pellets provide a use for waste which might
otherwise be destined for landfill or incineration, instead of
efficient electricity production.
"This is the world's first conversion of a power station from
coal to 100% waste derived fuel and the project will be the
blueprint for other conversions around the world. We are already
receiving high levels of interest from other asset-owners looking
to replicate the Uskmouth conversion process."
Tim Cornelius, Chief Executive Officer at SIMEC Atlantis Energy,
commented:
"We are ramping up investment in the Uskmouth conversion project
this year as it is such an important project to our shareholders,
the environment and the Welsh economy. The Uskmouth team are world
class. This project has become an important blueprint for the plans
of coal fired asset owners and policy makers around the world. It
will also be transformational for Atlantis in terms of revenue and
cash flow generation.
"The regeneration and repurposing of coal fired power stations
to consume waste derived fuel and deliver baseload, low cost
electricity is the utopian industrial story for governments around
the world."
* WSP UK Limited ("WSP"), RJM Corporation Technical Services
Limited ("RJM") and Simec Subcoal Fuels ("SSF"), a 50:50 joint
venture between N+P Group and SIMEC Energy.
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/4537F_1-2019-7-14.pdf
Enquiries:
SIMEC Atlantis Energy Limited via FTI Consulting
Tim Cornelius, Chief Executive Officer
Andrew Dagley, Chief Financial Officer
Cantor Fitzgerald Europe (Nominated
Adviser and Joint Broker) +44 (0)20 7894 7000
Rick Thompson
Richard Salmond
David Porter
J.P. Morgan Cazenove (Joint Broker)
James Deal
Michael Wentworth Stanley +44 (0) 20 7742 4000
FTI Consulting +44 (0)20 3727 1000
Ben Brewerton
James Styles
Molly Stewart
Notes to Editors
SIMEC Atlantis Energy
SIMEC Atlantis Energy is the global developer, owner and
operator of sustainable energy projects with a diverse portfolio of
more than 1,000 megawatts in various stages of development. This
includes a 77% stake in the world's largest tidal stream power
project, MeyGen, and the conversion of the 220MW Uskmouth Power
Station.
In 2017, SAE 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 fuel pellet to generate electricity. The plant
is expected to enter commercial operations in 2020 and will sell
its power to GFG Alliance companies under two 20-year power
purchase agreements. A successful conversion will tackle the
pressing issue of non-recyclable waste in the UK and will form the
blue-print for other large-scale conversion projects across the
globe.
www.simecatlantis.com
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END
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