Simec Atlantis Energy (SAE), the tidal power firm 50 per cent owned by the industrial player SIMEC, has reveal has revealed plans to convert more coal-fired power stations around the world to run on waste-based biofuel pellets. SAE Reveal Plans to Convert More Coal Fired Power Station. The firm has issued a tender for front end engineering and design (FEED) work on the Uskmouth project in Wales and said that they are set to award the final contract for the design for the £185m conversion of a coal-fired power station in Wales within weeks.
The station, which is being converted to use pellets made from waste including non-recyclable plastics, will export 220MW of baseload power to the grid. SAE Reveal Plans to Convert More Coal Fired Power Station.
SIMEC Atlantis believes the conversion of Uskmouth can act as a prototype for a pipeline of future conversions globally. The company said it is already in discussions with plant owners and operators in Europe, Australia, Asia and the USA over future conversions to extend the economic life of power generation facilities.
The conversion – which has been previously estimated to cost around £185m – is expected to take 18 months following completion of the FEED contract with a target of first production in Q4 2020. The converted station will have an operational life of 20 years.
Tim Cornelius, chief executive of SIMEC Atlantis, said that the Uskmouth project should be very profitable project for the group once it is operational in 2020. Cash flow generated from high margin projects such as Uskmouth will allow them to fund growth through carefully selected and executed acquisitions in addition to their existing portfolio of in-house developments and organic growth opportunities.
The Uskmouth project will be the catalyst for further conversions throughout Europe as SAE seeks to establish itself as a leading independent sustainable energy generation company. Meanwhile, SAE continues to work on the development of new tidal power projects, following the success of its 6MW MeyGen project in Scotland which is now fully operational.
Earlier this year the firm submitted a proposal for a 1GW tidal stream array in Normandy to the French government, which it claims would deliver power at less than the current price of offshore wind in France by 2025.
It also plans to bid for a government subsidy contract in upcoming auctions to expand the capacity of the MeyGen project, the company confirmed late last month. Read more