SIMEC Atlantis Energy Limited Uskmouth Power Station Conversion Project Update (1444T)
July 16 2020 - 2:05AM
UK Regulatory
TIDMSAE
RNS Number : 1444T
SIMEC Atlantis Energy Limited
16 July 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.
16 July 2020
SIMEC ATLANTIS ENERGY LIMITED
("Atlantis ")
Uskmouth power station conversion project update
As per the operational update issued on 14(th) April 2020,
Atlantis provides the following programme delivery update for its
flagship Uskmouth power station conversion project and announces
that it has engaged data centre development specialist TechRE to
explore options to locate edge and hyperscale data centres within
the Uskmouth power station development envelope at Newport in
Wales.
The Uskmouth project seeks to re-purpose a coal-fired power
station to operate using waste-derived fuel pellets consisting of
50% waste biomass materials with the remaining fuel pellet content
made up of plastic wastes which are unsuitable for recycling.
Following full conversion, the Uskmouth power station is expected
to generate 220MW of baseload electricity from this sustainable
fuel source.
Having adjusted for current expected COVID disruptions, Atlantis
has determined, in consultation with stakeholders and potential
financiers, that the project will now be developed in two phases.
The initial phase will comprise the conversion of the first 110MW
generation unit at the power station ("Phase 1"), and upon
successful commissioning of Phase 1 it is intended that a second
unit ("Phase 2") will be converted to increase the total net output
from the station to 220MW.
As announced in June 2020 following successful completion of
large-scale combustion testing, final design studies are now
underway to inform the scope of the Engineering, Procurement and
Construction ("EPC") contract. The EPC tender process will be a
global tender process for qualified participants. The EPC contract
negotiations are now expected to conclude in early Q1 2021 with an
announcement of the successful bidder and/or consortium shortly
thereafter. The terms and conditions of the EPC contract will
determine the final structure of the project finance package.
Financial close is therefore expected to occur in late Q1 2021 or
early Q2 2021. The conversion works for Phase 1 are expected to
take 18 months from commencement of the EPC contract. Atlantis will
seek to achieve financial close for Phase 2 as soon as possible
following commissioning of Phase 1.
Development of private wire offtake opportunity with TechRe
Further, Atlantis has engaged data centre development specialist
TechRE to explore options to locate edge and hyperscale data
centres within the Uskmouth power station development envelope. It
is proposed that power could be delivered through a private wire
network under a long-term power purchase agreement to owners and
operators of these data centres built onsite at Uskmouth.
Tim Cornelius, CEO of SIMEC Atlantis Energy, commented:
"The continued focus on the transition to a carbon neutral
economy has received fresh impetus as a result of the impact of
COVID-19 and countries around the world are looking at the
opportunities presented by a move to a carbon free economy as a way
to create jobs and generate sustainable prosperity. The Uskmouth
project is leading the way to a sustainable future and we are
delighted that so much progress has been able to be made on this
important project despite the disruptions we have all experienced
so far during 2020.
"The decision to phase the conversion into two stages is prudent
as it de-risks supply chain timelines, fuel supply and most
importantly the timeline to first electrons exported to the grid
and therefore revenue generation. Further, we are delighted to be
working with TechRe on the potential development of a large,
private wire supply contract to data centre operators at Uskmouth.
This could become one of the most exciting corporate PPA projects
in the UK, demonstrating how the digital economy can work
hand-in-hand with sustainable energy generators to establish more
data centre capacity in the UK to meet ever growing demands in an
ethical and responsible way."
Henry Sutton, Head of EMEA Projects at TechRe Consulting,
commented:
"TechRe is delighted to be working with Atlantis to help develop
initial designs and identify potential anchor customers for an
exciting new data centre campus to be located next to, and
sustainably and responsibly powered by, this ground breaking
conversion project.
Data centre end users are increasingly requiring access to
renewable power to power the digital economy and a key competitive
advantage from this project will be the lower power costs generated
by a sustainable supply provided by private wire connection. The
Uskmouth site will be attractive for hyperscale, wholsesale
colocation and internet edge operators and will form a unique,
fully connected and sustainable tech hub".
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
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END
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