Renewable energy group Atlantis Resources has raised £20m from shareholders to help it convert a former coal-fired power station to burn waste- derived pellets.
It intends to buy the former Uskmouth power station near Newport, south Wales, and complete the conversion by 2020 at an estimate cost of £185m.
Fuels will be supplied by a joint venture of Simec, which owns the power station at present, and Dutch refuse-derived fuel firm N+P. This joint venture will buy up to 15MW of electricity at £130 per megawatt hour.
Atlantis chief executive Tim Cornelius welcomed “such strong support from both new institutional investors and our existing shareholder”. He said it reflected confidence as the company began “building a diversified sustainable energy business of material scale”.
An Atlantis statement said Simec had concluded it was not viable to operate the power station using coal, and the most economically attractive option would be conversion to using “a fuel pellet derived from a mixture of waste biomass and other waste types such as plastics”.
It explained that recycling such waste “is currently either technically or economically unfeasible, but they can be used to produce a fuel pellet”.
Picture: Robin Drayton