TIDMSAE
RNS Number : 9920H
SIMEC Atlantis Energy Limited
09 December 2020
9 December 2020
SIMEC ATLANTIS ENERGY LIMITED
("Atlantis")
Atlantis operational update
Atlantis, the global developer of renewable and sustainable
energy projects, is pleased to provide the following operational
update across its thermal, marine and hydro divisions.
Uskmouth Power Station Conversion Project
In August 2020, Atlantis submitted its pre-application
consultation report and full planning application to Newport City
Council ("NCC") which followed on from its environmental permit
variation application submitted to Natural Resources Wales ("NRW")
in December 2019 and duly made in March 2020. During November 2020,
Atlantis received some additional requests for information from NCC
regarding the planning application and the team is in the process
of responding to these requests. Atlantis has also received a
consolidated list of final information requests from NRW including
a new Schedule 5 notice requesting detailed information to allow
NRW to consider authorisation of alternative combustion conditions.
Atlantis is responding to these requests with the assistance of
Mitsubishi Power Europe. Whilst there has been some impact of
COVID19 on application review timelines, results of the NCC
planning application request and the NRW determination on the
necessary variation to the plant's existing environmental permit
are expected in H1 2021.
Contract negotiations with shortlisted EPC contractors are
progressing well and, subject to agreeing terms, Atlantis intends
to update the market on the successful contractor in early
2021.
Negotiations continue regarding the opportunity to enter into a
private wire power purchase agreement with local industrial users
of energy. The Uskmouth project team is also assessing further
opportunities to deliver project revenue, including the evaluation
of the fuel for eligibility under the plant's existing Renewables
Obligation accreditation and investigation of grid support and
ancillary services.
In August 2020, Atlantis and N&P created a joint venture
company, NPA Fuels, to produce waste derived fuel pellets for
Uskmouth and future UK coal fired power station conversion
projects. NPA Fuels is now driving forward planning, permitting and
consenting for fuel production plants ("FPPs") in the UK. The
Company is currently negotiating land and rail rights at several
different locations across the UK, including both greenfield and
existing facilities. Atlantis will update the market on FPP
location(s) and capacity when appropriate.
The timeline for receipt of planning permission and permits for
a greenfield FPP location is expected to take between 4 - 6 months
post submission of applications, assuming minimal disruptions.
Further, it is currently assumed that FPP planning permission and
permits will be required to be in place for project financiers to
approve financial close. Therefore, although the FPP project team
is still targeting earlier delivery, Atlantis would like to advise
the market of a potential extension of financial close into H2 2021
driven by FPP permitting and planning approval timelines. We will
update the market as soon as full planning applications have been
submitted on FPP greenfield sites and requests for variations have
been submitted on FPP brownfield sites.
Tidal Power Division
Atlantis welcomes the recently announced plans for a UK Contract
for Difference round 4, opening in late 2021 and including a
separate "pot" for fixed offshore wind which has now progressed to
being a more established technology. Atlantis will continue to work
with UK government and the tidal industry to ensure the optimal
framework is in place to stimulate the UK's growing tidal energy
sector and replicate the successful growth and price reduction
curve of offshore wind.
In Europe, the recently published EU Strategy on Offshore
Renewable Energy set ambitious targets for 40GW of ocean energy by
2050, including at least 1GW by 2030. Ocean technologies are
recognised as having a significant part to play in Europe's energy
system, in particular by supporting grid stability and aiding
island decarbonisation. The strategy sets a goal of implementing
100MW of pilot projects by 2025 and Atlantis, through its French
joint venture Normandie Hydroliennes, is ideally positioned to play
a key role in achieving this goal.
Our flagship MeyGen project has now exported 35GWh to the grid.
MeyGen Phase 1 has faced some operational challenges recently and
one of the 1.5MW turbines supplied by Andritz Hydro Hammerfest will
consequently require retrieval for repair in early 2021 during the
same offshore operation to redeploy the AR1500 turbine that was
recovered in August 2020 for repair and repower.
Atlantis is on target to deliver and install an AR500 turbine
system to Japan's Kyuden Mirai Energy's demonstrator project
located in the straits of Naru Island within the southern Japanese
Goto island chain. The turbine is currently in transit and is due
to be installed in Q1 2021.
Hydropower Division
Since the addition of the Green Highland Renewables ("GHR")
team, Atlantis has been building its hydro asset management and
construction management services. The asset management portfolio
continues to grow and the construction team is set to commission
three hydro projects (5.8MW in total) in the new year. Work will
also start on the Blackwater Dam project in January, which will see
the GHR team deliver a 740kW project for customer, Equitix. The
Blackwater Dam project is a notable milestone as it is GHR's 50th
hydro scheme.
Tim Cornelius, CEO of Atlantis, said:
"2020 has presented significant challenges for us all but it has
also presented many opportunities of which we have been able to
take advantage with the support of our shareholders and
stakeholders. As a result, 2021 is looking to be a very positive
year of milestone achievements across all of our divisions and I am
extremely proud of the Atlantis team for the dedication and hard
work they have put in given the challenges the COVID 19 pandemic
has presented."
-- ENDS --
Enquiries:
+44 (0) 7739 832
SIMEC Atlantis Energy Limited 446
Sean Parsons, Director of
External Affairs
----------------------
Investec Bank PLC - NOMAD +44 (0) 20 7597
and Joint Broker 5970
----------------------
Jeremy Ellis
Sara Hale
Ben Griffiths
----------------------
Arden Partners PLC - Joint
Broker +44 (0) 20 7614 5900
----------------------
Ruari McGirr
Richard Johnson
----------------------
Notes to Editors
SIMEC Atlantis Energy
Atlantis is a global developer, owner and operator of
sustainable energy projects with a diverse portfolio in various
stages of development. This includes a 77 per cent. stake in the
world's largest tidal stream power project, MeyGen, 100 per cent.
of the 220MW Uskmouth Power Station conversion project and 100 per
cent of Green Highland Renewables, a leading developer and operator
of mini-hydro projects.
https://www.simecatlantis.com/
More on the MeyGen Project:
https://simecatlantis.com/projects/meygen/
More on the Uskmouth Project:
https://simecatlantis.com/project-development-operation/simec-uskmouth-power/
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