Last checked at 6 Nov 2018 07:00
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 Atlantis is Tim Cornelius, Chief Executive Officer of SIMEC Atlantis Energy.
6 November 2018
SIMEC ATLANTIS ENERGY LIMITED
("Atlantis", the "Company" or the "Group")
FEED Contract Awarded for World's First Conversion from Coal to 100% waste derived fuel
Highlights
· | Front-end engineering and design ("FEED") contract awarded to consortium of WSP UK Limited ("WSP") & RJM Corporation Technical Services Limited ("RJM") for ground breaking 220MW fuel conversion project |
· | The total contract size is £4.9m and is expected to take approximately 12 months to complete making this the largest contract awarded to date by SIMEC Atlantis Energy |
· | Major milestone in the world's first conversion from coal to 100% waste derived fuel |
· | The consortium will deliver the Final Design Specification for the plant which will enable Atlantis to award the Engineering Procurement and Construct ("EPC") contract with full performance guarantees to facilitate financial close on the Uskmouth Conversion Project within 2019 |
SIMEC Atlantis Energy ("Atlantis"), a diversified sustainable energy generation company, is delighted to announce the award of the FEED contract for the Uskmouth Power Station conversion project in Wales. The power station will be converted from coal power to generate electricity from 100% waste derived energy pellets.
Post conversion, the power station will export 220MW of baseload power to the grid using energy pellets produced from non-recyclable waste destined for landfill, with an average calorific value of 20 Mega Joules per kg. The energy pellets are produced by technology developed by Dutch company N+P Group ("N+P"), through a joint venture with the SIMEC group called SIMEC Subcoal Fuels Limited ("SSF").
Four new plants will be developed in the UK, including one already in construction in Teesport to produce the pellets. The largest plant is anticipated to be located next to Uskmouth Power Station, which will consume 600,000 tonnes of waste per year and provide a significant private wire opportunity for SIMEC Uskmouth Power Limited (SUP).
The conversion is expected to take 18 months post completion of the FEED study and the converted station will have an operational life of 20 years.
Uskmouth conversion project FEED contract award
The £4.9m FEED contract has been awarded to a consortium comprising WSP, a world leading engineering firm, and RJM, an industry leader in combustion system design.
The purpose of the FEED contract is to complete all technical testing and design work required to demonstrate that the waste derived energy pellets provided by SIMEC Subcoal Fuels Limited can be used as a fuel to convert the plant from generating power from coal to running on 100% energy pellets. In doing so, a Final Design Specification will be completed enabling Atlantis to award the Engineering Procurement and Construct contract with full performance guarantees to facilitate financial close on the Uskmouth Conversion Project.
Brian Sibthorp, Director - Thermal Power Plant at WSP, commented:
"The conversion of Uskmouth from coal to run on waste derived fuel is an exciting project that will provide a new lease of life to the site. It will ensure the UK is ready for a future focused on reduced coal and increased renewable energy generation. WSP, working with RJM, is pleased to support Simec Atlantis Energy at Uskmouth providing front end engineering design and Owner's Engineer services, Uskmouth, adds to WSP's increasing portfolio of conversion and replanting projects on existing or brownfield sites."
John Goldring, RJM's Managing Director commented:
"As an award-winning provider of innovative energy and emissions reduction solutions, we at RJM are delighted to be developing the FEED study alongside WSP.
"We've been working at the Uskmouth site since July 2015, from the inception of this unique conversion project, before moving onto a feasibility study and then completing the important pre-FEED study.
"As a business, we are as committed as SIMEC Atlantis Energy, the operator, to using this project as a blueprint for further conversion of similar plants worldwide to help address the key challenge of how we can treat waste material in an environmentally-responsible manner and use it to generate low carbon energy."
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 | |
Macquarie Capital (Europe) Limited (Joint Broker) Nick Stamp | +44 (0)20 3037 2000 |
FTI Consulting | +44 (0)20 3727 1000 |
Ben Brewerton Alex Beagley 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 we 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 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.
We intend this to be the first of a number of acquisitions aiming to transform SIMEC Atlantis into a diversified energy Company of scale, owning development and generating assets across the sustainable energy spectrum in Europe, Asia and Australia, complementing our existing UK pipeline.
https://simecatlantis.com/
WSP
WSP is one of the world's leading engineering professional services consulting firms. We are dedicated to our local communities and propelled by international brainpower. We are technical experts and strategic advisors including engineers, technicians, scientists, architects, planners, surveyors and environmental specialists, as well as other design, program and construction management professionals. We design lasting solutions in the Property & Buildings, Transportation & Infrastructure, Environment, Industry, Resources (including Mining and Oil & Gas) and Power & Energy sectors as well as project delivery and strategic consulting services.
With 7,800 talented people in the UK and more than 43,600 globally, we engineer projects that will help societies grow for lifetimes to come. WSP has been involved in many high-profile UK projects including the Shard, Crossrail, Queen Elizabeth University Hospital, Manchester Metrolink, M1 Smart Motorway, the re-development of London Bridge Station, and the London Olympic & Paralympic Route Network.
www.wsp.com/uk
RJM Corporation (EC) Limited
RJM Corporation (EC) Limited is a global, specialist provider of a range of innovative and technologically-sophisticated products and services focused on the power and industrial plant sectors. It has completed over 60,000MWe of major combustion and emission control projects at power generators and other large combustion plants worldwide and is a pioneer in the development of technologies and systems to fire biomass and waste-derived energy pellets.
http://www.rjm-international.com/