SIMEC Energy and Atlantis Resources make deal over Uskmouth Power Station
SIMEC Energy, a company part of Sanjeev Gupta’s GFG Alliance, announced on 14 December its deal with the tidal power firm, Atlantis Resources Ltd.
Atlantis is to acquire SIMEC’s 363MW Uskmouth Power Station located in South Wales, whilst SIMEC Energy will acquire 49.99% of Atlantis.
Atlantis will be rebranded as SIMEC Atlantis Energy Ltd, and will become part of Sanjeev Gupta’s GFG Alliance.
SIMEC Atlantis Energy aims to build a diversified green power enterprise that expands across the globe.
The company will drive forward the £200mn (US$266mn) renewable energy conversion of the Uskmouth station.
The conversion will be in addition to the development of the Meygen tidal stream project located in Scotland, as well as the tidal barrage project in the Wyre Estuary, Lancashire.
“We believe in marine energy and in SIMEC Atlantis’ position as the sector champion,” remarked the Chief Investment Officer and Chief Executive of SIMEC Energy, Jay Hambro.
“Atlantis has an excellent track record of delivery in renewable power projects, so our partnership with them will ensure the successful conversion of Uskmouth power station. We intend the South Wales site to be a centre of excellence for renewable power technologies and a hub for green power generation.”
“This transaction forms a major part of our ambition to create 1gigawatt of renewable energy capacity in the UK within the next three years.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.