Simec Atlantis Energy (SAE) announced on Thursday that its Uskmouth site is transitioning into a sustainable energy park, leading the group’s shares to soar 15% to 2.65p.
SAE said that the Uskmouth site’s transformation into a sustainable energy park includes plans to provide a Battery Energy Storage System as a first step (BESS).
The Uskmouth site has a 230MW grid connection, as well as extensive land and infrastructure, making it an ideal location for the construction of a large-scale, commercially appealing BESS project.
BESS integration into transmission and distribution networks is widely acknowledged as a significant enabler of increased and faster integration of intermittent renewable energy into the UK electricity supply.
SAE has progressed the BESS development process by submitting a Modification Application to National Grid, requesting that the Uskmouth site’s connection agreement be changed to accommodate a BESS plant.
SAE has also filed a screening report to Newport City Council for the development of a 230MW BESS facility on the former coal stockyard and is working with an industry-leading partner to expedite the battery storage facility’s delivery.
SAE is no longer pursuing the previously stated plans for the Uskmouth Conversion Project due to the establishment of a BESS at the Uskmouth site and has notified Welsh Government and relevant stakeholders that it would be withdrawing the permission variation application.
SAE has entered into a deal to sell some parts of the plant that are no longer needed for the site’s future ambitions as a result of this decision.
Wye Valley Demolition, a local company, has been given £1.2m contracts to remove the redundant plant and equipment.
This deal provides immediate funding to SAE’s business, assisting in the achievement of SAE’s broader goals and providing value to shareholders.
While SAE will not move through with the Uskmouth Conversion Project, the need to repurpose coal-fired power plants has never been greater to decrease emissions, improve energy security, and reduce waste shipped to landfills and polluting our oceans.
Governments throughout the world are looking for projects that can provide energy security and independence rapidly, and our coal plant conversions can provide a speedy and cost-effective solution.
SAE is committed to expediting the transition of existing coal-fired power plants to lower-emissions fuels and is working with its partners to transfer key lessons learned to other nations where they may have the most impact.
Graham Reid, CEO of SAE commented, “The team and I are tremendously excited about this next step for the Uskmouth site, which will help deliver the UK’s net zero targets, release important value for the business and allow the team to build on the lessons learnt to help countries around the world to achieve the targets of reducing reliance on coal, increasing energy security, and finding long term solutions to the growing waste problem.”