Successful fuel test a milestone for Uskmouth

RNS Number : 6944Q

SIMEC Atlantis Energy Limited

23 June 2020

 

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 SIMEC Atlantis Energy Limited is Tim Cornelius, Chief Executive Officer of SIMEC Atlantis Energy Limited.

23 June 2020

SIMEC ATLANTIS ENERGY LIMITED

("Atlantis", the "Company" or the "Group")

Successful fuel tests represent significant milestone

for Uskmouth Power Station Conversion Project ("Uskmouth Conversion Project")

SIMEC Atlantis Energy, the global developer, owner and operator of sustainable energy projects, announces the successful completion of industrial-scale combustion testing of the waste derived fuel pellets to be used at the Uskmouth Conversion Project.

In October 2019, Atlantis announced that it had awarded Mitsubishi Hitachi Power Systems Europe GmbH ("MHPS") the contract to carry out the design and development of the combustion system for the flagship Uskmouth Conversion Project. This contract included the largest ever combustion testing of the fuel pellets, which will be used as fuel in the Uskmouth Conversion Project, at Mitsubishi Heavy Industries's Research & Innovation Centre in Nagasaki (Japan).

Successful completion of this testing is a significant milestone for the project. The test conclusively proves that a pulverised fuel burner based on MHPS's DS® Ultra Low NOx burner can be used to stably combust the waste derived fuel unsupported (i.e. without any oil or gas support firing). The burner was able to operate continuously at 25MW thermal power using the fuel and is comparable in rating to the burners required for the Uskmouth Conversion Project.

During the testing MHPS established that it was possible to feed large volumes of pulverised fuel to the burner via a pneumatic system without disturbances, at a rate that is comparable to that required at the Uskmouth Conversion Project. MHPS also investigated and confirmed that flue gas emissions were within anticipated levels and that the burner was able to achieve expected low NOx performance whilst maintaining low CO levels.

Following successful completion of the test the final stages of the pre-EPC detailed design contract is now underway. Final design studies include using the successful combustion test results to validate the computational fluid dynamics modelling, carrying out more detailed Uskmouth boiler system refurbishment design and confirming the requirements for refurbishment and enhancement of the existing flue gas treatment system. MHPS will have completed all of this work by Q4 2020 at which point they will be able to make an offer for a fixed price supply of the combustion system under an EPC contract with terms and conditions suitable for project finance.

The bespoke fuel pellets, designed and produced by project partner and leading Dutch alternative fuel specialist N+P Group, contain approximately 50% biogenic waste material (such as paper and cardboard), with the remainder made up predominantly of plastic waste. The waste used to make the pellets is not currently economically recyclable and therefore, if not used in production of fuel pellets, would be sent to landfill or diverted from landfill to purpose-built incineration facilities (with or without energy recovery) or exported for use abroad.

Tim Cornelius, CEO of SIMEC Atlantis Energy, commented:

"The successful completion of the fuel combustion testing is a major milestone for this flagship conversion project and represents a very important step in the program towards achieving financial close.

This project is the world's first example of a coal-fired power station being repurposed to run on 100% waste derived fuel pellets and the results of this test will potentially have material implications for the way plastic waste, and aging coal fired power stations, is managed globally in the future."

Falk Hoffmeister, Vice President Head of Service of Mitsubishi Hitachi Power Systems Europe, commented:

"We were delighted to work with Atlantis on the combustion testing for the flagship Uskmouth project and we always believed that the successful completion of this large-scale testing will open up a huge new market globally for MHPS and Atlantis for future similar conversions. The testing couldn't have gone better and we are delighted that the results pave the way for this successful project and huge global, future opportunities."

Lars Jennissen, Chief Development Officer of N+P Group B.V. commented:

"After two years of development we are delighted with the achieved results, a major milestone for everyone involved in the project. The bespoke pellet, especially designed for the demanding environment of a pulverized fuel furnace, performed very well in the trials. This result gives us as a company a lot of confidence that the flagship Uskmouth project will prove to the world that coal fired power plants can be converted to use bespoke waste derived fuels and in this way contribute to reducing non-recyclable waste going to landfills as well as contributing to a significant CO₂ reduction for power generation."

For more information, please contact:

SIMEC Atlantis Energy Limited Sean Parsons, Director of External Affairs	Tel: [phone]
Investec Bank plc (Nominated Adviser and Sole Broker) Jeremy Ellis Sara Hale Ben Griffiths	Tel: [phone]
FTI Consulting Ben Brewerton Caroline Cutler Chris Laing	Tel: [phone]

SIMEC Atlantis Energy

SIMEC Atlantis Energy is the global developer, owner and operator of sustainable energy projects with a diverse portfolio in various stages of development. This includes a 77% stake in the world's largest tidal stream power project, MeyGen,100% ownership of the 220MW Uskmouth power station conversion project and 100% ownership of Green Highland Renewables, a leading developer of mini-hydro power projects.

www.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/  

 

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