15th Jul 2019 17:47
(Alliance News) - Simec Atlantis Energy Ltd said Monday its Uskmouth conversion project is on track to start operations in 2021.
Uskmouth power station in Newport, south Wales, is being converted from a coal-fired power plant into a 220 megawatt baseload power plant, which will use fuel pellets derived from waste.
Simec said the pellets will contain a high proportion of plastic waste which could not be recycled and so would be sent to a landfill.
Simec said front end engineering design tests and studies have been successfully completed, showing a stable flame in medium scales testing. The company said this proves the "stable combustion" of 100% waste derived fuel pellets.
"These results correlate to the computational fluid dynamics model and confirm a stable self-sustaining flame with combustion performance within expected parameters," Simec added.
"We are ramping up investment in the Uskmouth conversion project this year as it is such an important project to our shareholders, the environment and the Welsh economy. The Uskmouth team are world class. This project has become an important blueprint for the plans of coal fired asset owners and policy makers around the world. It will also be transformational for Atlantis in terms of revenue and cash flow generation," said Chief Executive Tim Cornelius.
Simec will run an industrial scale fuel production test in the second half of 2019.
Cornelius added: "The regeneration and repurposing of coal fired power stations to consume waste derived fuel and deliver baseload, low cost electricity is the utopian industrial story for governments around the world."
Once operational, Uskmouth is expected to generate 1,500 gigawatt hours of energy every year, which is enough to power 500,000 homes in the UK.
Shares in Simec closed down 1.0% in London on Monday at 14.60 pence each.
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