TIDMSAE
RNS Number : 7080R
SIMEC Atlantis Energy Limited
31 October 2019
31(st) October 2019
SIMEC ATLANTIS ENERGY LIMITED
("Atlantis", the "Company" or the "Group")
Notification of award of contract for combustion system design
for Uskmouth Power Station Conversion Project
SIMEC Atlantis Energy Limited ("Atlantis"), the owner and
operator of the Uskmouth Power Station Conversion Project located
in Newport, Wales, is delighted to announce that after a
competitive process, it has awarded Mitsubishi Hitachi Power
Systems Europe GmbH ("MHPS Europe") the contract to carry out the
design and development of the combustion system for the flagship
Uskmouth Power Station conversion project. This contract includes
the large scale testing of the waste derived pellets which will be
used as fuel in the converted Uskmouth plant.
MHPS Europe is the European subsidiary of Mitsubishi Hitachi
Power Systems, Ltd. a joint venture company between Mitsubishi
Heavy Industries, Ltd. and Hitachi, Ltd. integrating their
operations in thermal power generation systems and other related
businesses, headquartered in Yokohama, Japan.
The contract will cover:
-- Completion of industrial scale milling tests on the fuel pellets;
-- Completion of industrial scale combustion tests on the fuel; and
-- Completion of Uskmouth furnace burner system design.
The results of these final validation tests are required ahead
of the negotiation and award of the major Engineering, Procurement
and Construction ("EPC") contract to supply the full combustion
system to the project under the terms and conditions necessary for
the project to secure project finance.
MHPS Europe anticipate that the fuel can be successfully milled
and combusted using their existing technology and therefore the
testing will take place using equipment already deployed across the
globe in existing power projects. It is expected that industrial
milling testing will occur in Germany at an existing MHPS Europe
milling test facility and then final industrial scale combustion
testing will occur at an existing MHPS combustion test facility in
Nagasaki, Japan. We expect the testing to provide final validation
of the fuel specification and the mill and burner designs required
for use on the Uskmouth Power Station conversion project.
The fuel supplier for the project Simec Subcoal Fuels ("SSF")
will assemble a dedicated industrial scale pilot production line
for supply of the test fuel at their existing pelleting facility in
Netherlands. The fuel produced at this facility will be sent to
Germany and Japan for final testing by MHPS. The milling,
combustion efficiency and emission results are expected to be
available in Q2 2020.
The Uskmouth Power Station Conversion Project represents the
world's first conversion of a power station from coal to 100% waste
derived fuel, and following successful trials with MHPS the project
will seek to achieve financial close in Q3 2020 with generation
beginning in 2021.
David Taaffe, Director of Projects of SIMEC Atlantis,
commented:
"After investing more than GBP2m over the past 12 months in
development of the fuel specification required for combustion at
Uskmouth and the conversion project's design and consents, we are
now very excited to enter into this important partnership with
Mitsubishi Hitachi Power Systems, one of the world's largest and
most experienced thermal generation solution and equipment
providers. The project is well on track to contract the conversion
works on an EPC basis with terms and conditions suitable for
project finance. Completion of this contract with MHPS will be a
key enabling step towards that goal. The Atlantis project team at
Uskmouth and our fuel partners SSF are looking forward to working
closely with MHPS on the final industrial scale tests of the
fuel."
Tim Cornelius, CEO of SIMEC Atlantis, commented:
"Uskmouth is not only the largest end of waste conversion
project in Europe, it is the pilot plant for the world's ageing
fleet of coal fired power plants and a solution for governments
world-wide faced with the unavoidable problem of non-recyclable
waste and landfill. The successful commissioning of the converted
Uskmouth plant is vitally important for the United Kingdom in terms
of future waste management strategies and commercially exciting for
our shareholders and stakeholders. To have a technology and
construction partner of the calibre of Mitsubishi Hitachi Power
Systems onboard is further validation of this ground-breaking
project which is set to disrupt and change the way utilities and
governments view ageing coal fired assets globally. Predicated on
success at Uskmouth, we hope to work with Mitsubishi Hitachi Power
Systems on many future projects which will provide grid operators
with stable, flexible generation and governments a solution for the
perennial issue of the responsible disposal of non-recyclable
waste."
Falk Hoffmeister, Vice President BU Plant Optimisation of MHPS
Europe, commented:
"Mitsubishi Hitachi Power Systems Europe are delighted that
Atlantis have awarded us the pre-EPC combustion testing contract
for their flagship Uskmouth conversion project. We are looking
forward to working with both Atlantis and their fuel supplier,
SIMEC Subcoal Fuels on this project to demonstrate the capabilities
of our existing high-performance mills and burners on this new
fuel. Our thermal generation equipment is already extensively
proven on a large number of coal and converted biomass projects
around the world and we are confident we can deliver similar
results using the waste derived energy pellets being used at
Uskmouth. The successful completion of this large-scale testing
contract is a key enabler for a major EPC contract with Atlantis
for conversion of the Uskmouth power station and will hopefully
open up a huge new market globally for MHPS and Atlantis for future
similar conversions."
Lars Jennissen, CTO of SIMEC Subcoal Fuels ("SSF"),
commented:
"The Uskmouth project is the most exciting example of waste
management solutions anywhere in the world at present. This project
uses non-recyclable waste streams and converts them into a high
quality fuel pellet using the N+P Group's proprietary Subcoal(R)
process which can be used to generate long term, predictable and
sustainable energy in former coal fired power stations. Through
this process, usage of and dependence on fossil fuels can and will
be significantly reduced. In addition, there will be a reduced
requirement to send waste to landfill. Over the past few months,
our dedicated team have worked with a number of partners around the
world to further improve the quality of our pelletized fuel, so
that it can be combusted in similar ways to how coal is combusted.
At the N+P Group, we are now in the process of commissioning an
industrial scale pellet plant in the Netherlands. This pilot
facility will allow us to produce the required volumes of the fuel
for these large scale milling and combustion trials. In parallel,
our joint venture, SSF, is currently developing two new full scale
production facilities in the United Kingdom which will supply the
Uskmouth project with the required volume of fuel at a world
leading quality and specification, using domestic UK waste - waste
which is currently either exported to Europe or sent to UK
landfills."
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
David Porter
J.P. Morgan Cazenove (Joint Broker)
Michael Wentworth Stanley +44 (0) 207 742 4000
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 a 100% stake in the 220MW Uskmouth Power
Station conversion project.
https://simecatlantis.com/
Mitsubishi Hitachi Power Systems Europe
Mitsubishi Hitachi Power Systems Europe GmbH (MHPS Europe), a
subsidiary of the global company Mitsubishi Hitachi Power Systems,
Ltd., plans and constructs power plants and offers long-term
service and maintenance contracts. The plant constructor also
delivers key components such as gas turbines, steam generators and
environmental technology. As a market and technology leader, e.g.
for fuel-flexible gas turbines and for steam generators, the
company focuses on modern, environmentally friendly and efficient
plants. MHPS Europe acts as a total solution provider and employs
around 670 staff.
https://www.emea.mhps.com/en/
N+P
The N+P Group, internationally recognized and certified service
provider in recycling, has developed into a pre-eminent specialist
in the purchase and supply of industrial residues for industrial
reuse.
By developing recycling concepts for the industrial residues N+P
is in the position to carry through purchase and supply guarantee,
independent of seasonal influences.
In this way N+P opens up new horizons when deploying industrial
residues as secondary raw materials and fuels.
https://www.np-recycling.nl/en/
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END
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