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Simec Atlantis enters joint venture with N+P Group
22nd Dec 2020 08:23
(Sharecast News) - Energy generation and technology company Simec Atlantis has formally entered into a joint venture agreement with alternative fuel producer and supplier N+P Group, it announced on Tuesday.
The AIM-traded firm said the deal followed its August signing of heads of terms, adding that it would own 50% of the new company, NPA Fuels.
It said NPA would produce, market, and deliver waste-derived fuel products to converted coal-fired power station operators throughout the UK, and the Uskmouth project.
It would produce 'Subcoal', which it described as a "high-quality" waste-derived fuel product for sale to Simec Atlantis-owned assets, as well as to other converted UK coal-fired power stations.
As per its operational update on 9 December, Simec Atlantis said NPA was now driving forward planning, permitting and consenting for multiple fuel production plants in the UK.
The company said it was 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 research and development and testing program has been conducted in collaboration with multiple academic institutions and with the assistance of Mitsubishi Power Europe," said chief executive officer Timothy Cornelius.
"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."
At 0914 GMT, shares in Simec Atlantis were up 17.97% at 17.4p.
The AIM-traded firm said the deal followed its August signing of heads of terms, adding that it would own 50% of the new company, NPA Fuels.
It said NPA would produce, market, and deliver waste-derived fuel products to converted coal-fired power station operators throughout the UK, and the Uskmouth project.
It would produce 'Subcoal', which it described as a "high-quality" waste-derived fuel product for sale to Simec Atlantis-owned assets, as well as to other converted UK coal-fired power stations.
As per its operational update on 9 December, Simec Atlantis said NPA was now driving forward planning, permitting and consenting for multiple fuel production plants in the UK.
The company said it was 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 research and development and testing program has been conducted in collaboration with multiple academic institutions and with the assistance of Mitsubishi Power Europe," said chief executive officer Timothy Cornelius.
"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."
At 0914 GMT, shares in Simec Atlantis were up 17.97% at 17.4p.