LONDON (Alliance News) - Simec Atlantis Energy Ltd on Monday said it is making good progress on its flagship 220 megawatts power-station conversion project in Uskmouth, Wales.
The sustainable energy generation company believes that the conversion of the Uskmouth power station from coal to waste-derived Subcoal fuels can act as a prototype for a pipeline of future power-plant conversions globally.
Simec Atlantis said it has recently concluded milling trials on the N+P Subcoal pellets using vertical spindle roller mills in Germany.
Subcoal pellets are made from a combination of biogenic waste and non-recyclable plastic, Simec Atlantis said. These pellets will replace coal-fired generation at the company's Uskmouth facility, in Newport, south east Wales.
The results of the milling trials will inform the final design of the combustion system which will be retrofitted to the existing power station.
Post conversion, Simec Atlantis said the station will export 220 megawatts of baseload power to the grid using an end-of-waste energy pellet with an average calorific value of 20 mega joules per kilogram.
The conversion is expected to take 18 months post completion of front end engineering and design with a target of first production in the fourth quarter 2020. The converted station will have an operational life of 20 years, Simec Atlantis said.
Looking forward, the company said it is already in discussions with plant owners and operators in Europe, Australia, Asia and the US with respect to future conversions.
"This should be a very profitable project for the Simec Atlantis once it is operational in 2020," said Chief Executive Tim Cornelius.
"Cash flow generated from high-margin projects such as Uskmouth will allow us to fund growth through carefully selected and executed acquisitions in addition to our existing portfolio of in-house developments and organic growth opportunities," added Cornelius.
Shares in Simec Atlantis were trading 0.9% lower on Monday at 26.50 pence each.
Simec Atlantis (SAE)