SIMEC Atlantis Energy Limited (LON:SAE) said it has now formally entered into a joint venture agreement with the Netherlands based N+P Group.
The company had previously flagged an agreement was in the works with fuel production specialist N+P back in August.
The joint venture, NPA Fuels Limited, will produce, market, and deliver waste-derived fuel products to converted coal-fired power station operators throughout the UK, and the Uskmouth project. NPA will produce “Subcoal”, a high-quality waste-derived fuel product for sale to Atlantis-owned assets as well as to other converted UK coal-fired power stations.
NPA is now driving forward planning, permitting and consenting for multiple fuel production plants in the UK, SIMEC Atlantis said. The company is currently negotiating land and rail rights at several different locations across the UK, including both greenfield and existing facilities.
“The waste-derived fuel pellet developed by N+P Group over the past few years as part of Atlantis’ multi-million pound R&D and testing programme has been conducted in collaboration with multiple academic institutions and with the assistance of Mitsubishi Power Europe,” said Tim Cornelius, the chief executive officer of SIMEC Atlantis in a statement.
“This work has changed the way the industry views ageing coal-fired assets, which are soon to be retired. We expect this fuel to be in high demand and securing supply for Uskmouth through our ownership of NPA Fuels is an important step towards achieving financial close. We look forward to building a large and profitable alternative fuels powerhouse together in the years to come,” Cornelius added.
Stijn Jennissen, the chief commercial officer of N+P Group, noted that Subcoal is a unique fuel that is combustible in converted existing coal burners.
“We believe this unique fuel will revolutionise the way coal-fired power stations operate in the future. We are very excited to be the sole fuel supply partner on the Uskmouth project in Wales via our ownership in NPA Fuels, which we believe will be the catalyst for many more power station conversions globally. We believe that the Uskmouth contract will be the start of a rapid growth, profitable and scalable business and we look forward to growing NPA Fuels with Atlantis in the UK over the coming years,” Jennissen said.
