Simec Atlantis has signed an agreement with Mitsubishi Hitachi Power Systems Europe (MHPS Europe) for the plant’s combustion system design.
Simec Atlantis’ plans to develop a 220MW power plant that burns paper, card and plastic at Uskmouth continue to advance. The Gupta-controlled firm has signed an agreement with Mitsubishi Hitachi Power Systems Europe (MHPS Europe) for the plant’s combustion system design.
Simect Atlantis shares rose 18 per cent on the news.
The Uskmouth plant, which Simec claims could provide a “blueprint” for conversion of coal plants around the world, is designed to burn waste-derived pellets called ‘subcoal’. The firm intends to build a pellet production plant next to the power station and the contract with MHPS Europe includes large scale testing of the pellets as well as the furnace burner design system.
MHPS thinks the fuel can be milled and burnt via existing technology, so will test it at plants around the world. Results are anticipated in Spring 2020.
If tests go well, Simec Atlantis hopes to complete financial close in Q3 2020 with generation beginning in 2021.
Falk Hoffmeister, vice president, BU Plant Optimisation at MHPS Europe, said the firm is “confident” about making the fuel and systems work and that if Uskmouth goes well, it will “hopefully open up a huge new market globally for MHPS and Atlantis for future similar conversions”.