LONDON (ShareCast) - (Sharecast News) - Simec Atlantis Energy announced the successful production of 100 tonnes of fuel pellets for large-scale combustion testing on Monday, as well as the successful completion of large-scale milling tests on the 100% waste-derived fuel pellets to be used at the Uskmouth power station, post conversion.
The AIM-traded firm described it as a "key milestone" for the project, which provided it with further confidence that the energy pellets developed as a high calorific value, low-cost alternative to coal were able to be produced in commercial quantities, and could be milled using industry-standard designs.

It said the next stage in the project would be for Mitsubishi Hitachi Power Systems Europe to conduct final large-scale combustion trials at their 24MW facility in the second quarter of 2020, to validate combustion system design, prior to concluding engineering, procurement and construction contract negotiations with lead project partners.

The fuel pellets, produced by project partner N+P Group, contain around 50% biogenic waste material such as paper and cardboard, with the remainder made up primarily of plastic waste.

Simec Atlantis said the waste used to make the pellets was not currently economically recyclable, and thus if not used in the production of fuel pellets, would likely have been disposed of in landfill.

"The completion of the fuel production and the milling trials are a major milestone for this flagship conversion project and represent very important steps in the program towards financial close," said chief executive officer Tim Cornelius.

"This project is the world's first example of a coal-fired power station being repurposed to run on 100% waste derived fuel pellets and the results of this test will potentially have material implications for the way plastic waste, and aging coal fired power stations, are managed globally in the future."

At 0851 GMT, shares in Simec Atlantis Energy were up 4.29% at 10.95p.

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