TIDMSAE
RNS Number : 6944Q
SIMEC Atlantis Energy Limited
23 June 2020
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.
23 June 2020
SIMEC ATLANTIS ENERGY LIMITED
("Atlantis", the "Company" or the "Group")
Successful fuel tests represent significant milestone
for Uskmouth Power Station Conversion Project ("Uskmouth
Conversion Project")
SIMEC Atlantis Energy, the global developer, owner and operator
of sustainable energy projects, announces the successful completion
of industrial-scale combustion testing of the waste derived fuel
pellets to be used at the Uskmouth Conversion Project.
In October 2019, Atlantis announced that it had awarded
Mitsubishi Hitachi Power Systems Europe GmbH ("MHPS") the contract
to carry out the design and development of the combustion system
for the flagship Uskmouth Conversion Project. This contract
included the largest ever combustion testing of the fuel pellets,
which will be used as fuel in the Uskmouth Conversion Project, at
Mitsubishi Heavy Industries's Research & Innovation Centre in
Nagasaki (Japan).
Successful completion of this testing is a significant milestone
for the project. The test conclusively proves that a pulverised
fuel burner based on MHPS's DS(R) Ultra Low NOx burner can be used
to stably combust the waste derived fuel unsupported (i.e. without
any oil or gas support firing). The burner was able to operate
continuously at 25MW thermal power using the fuel and is comparable
in rating to the burners required for the Uskmouth Conversion
Project.
During the testing MHPS established that it was possible to feed
large volumes of pulverised fuel to the burner via a pneumatic
system without disturbances, at a rate that is comparable to that
required at the Uskmouth Conversion Project. MHPS also investigated
and confirmed that flue gas emissions were within anticipated
levels and that the burner was able to achieve expected low NOx
performance whilst maintaining low CO levels.
Following successful completion of the test the final stages of
the pre-EPC detailed design contract is now underway. Final design
studies include using the successful combustion test results to
validate the computational fluid dynamics modelling, carrying out
more detailed Uskmouth boiler system refurbishment design and
confirming the requirements for refurbishment and enhancement of
the existing flue gas treatment system. MHPS will have completed
all of this work by Q4 2020 at which point they will be able to
make an offer for a fixed price supply of the combustion system
under an EPC contract with terms and conditions suitable for
project finance.
The bespoke fuel pellets, designed and produced by project
partner and leading Dutch alternative fuel specialist N+P Group,
contain approximately 50% biogenic waste material (such as paper
and cardboard), with the remainder made up predominantly of plastic
waste. The waste used to make the pellets is not currently
economically recyclable and therefore, if not used in production of
fuel pellets, would be sent to landfill or diverted from landfill
to purpose-built incineration facilities (with or without energy
recovery) or exported for use abroad.
Tim Cornelius, CEO of SIMEC Atlantis Energy, commented:
"The successful completion of the fuel combustion testing is a
major milestone for this flagship conversion project and represents
a very important step in the program towards achieving financial
close.
This project is the world's first example of a coal-fired power
station being repurposed to run on 100% waste derived fuel pellets
and the results of this test will potentially have material
implications for the way plastic waste, and aging coal fired power
stations, is managed globally in the future."
Falk Hoffmeister, Vice President Head of Service of Mitsubishi
Hitachi Power Systems Europe, commented:
"We were delighted to work with Atlantis on the combustion
testing for the flagship Uskmouth project and we always believed
that the successful completion of this large-scale testing will
open up a huge new market globally for MHPS and Atlantis for future
similar conversions. The testing couldn't have gone better and we
are delighted that the results pave the way for this successful
project and huge global, future opportunities."
Lars Jennissen, Chief Development Officer of N+P Group B.V.
commented:
"After two years of development we are delighted with the
achieved results, a major milestone for everyone involved in the
project. The bespoke pellet, especially designed for the demanding
environment of a pulverized fuel furnace, performed very well in
the trials. This result gives us as a company a lot of confidence
that the flagship Uskmouth project will prove to the world that
coal fired power plants can be converted to use bespoke waste
derived fuels and in this way contribute to reducing non-recyclable
waste going to landfills as well as contributing to a significant
CO(2) reduction for power generation."
For more information, please contact:
SIMEC Atlantis Energy Limited Tel: +44 (0) 7739832446
Sean Parsons, Director of External Affairs
Investec Bank plc (Nominated Adviser and Tel: +44 (0) 20
Sole Broker) 7597 5970
Jeremy Ellis
Sara Hale
Ben Griffiths
FTI Consulting Tel: +44 (0) 20
Ben Brewerton 3727 1000
Caroline Cutler
Chris Laing
SIMEC Atlantis Energy
SIMEC Atlantis Energy is the global developer, owner and
operator of sustainable energy projects with a diverse portfolio in
various stages of development. This includes a 77% stake in the
world's largest tidal stream power project, MeyGen,100% ownership
of the 220MW Uskmouth power station conversion project and 100%
ownership of Green Highland Renewables, a leading developer of
mini-hydro power projects.
www.simecatlantis.com
Mitsubishi Hitachi Power Systems Europe
Mitsubishi Hitachi Power Systems Europe GmbH (MHPS Europe), a
subsidiary of the global company Mitsubishi Hitachi Power Systems,
Ltd., plans and constructs power plants and offers long-term
service and maintenance contracts. The plant constructor also
delivers key components such as gas turbines, steam generators and
environmental technology. As a market and technology leader, e.g.
for fuel-flexible gas turbines and for steam generators, the
company focuses on modern, environmentally friendly and efficient
plants. MHPS Europe acts as a total solution provider and employs
around 670 staff.
https://www.emea.mhps.com/en/
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END
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