Atlantis Resources PLC (LON:ARL) expects to finalise the terms of its acquisition of the Uskmouth power station in Wales in the second quarter of 2018.
When the terms have been agreed, Atlantis will convene an extraordinary general meeting to allow shareholders to vote on the deal, which, if approved, would see the company recommence trading as SIMEC Atlantis Energy.
READ: Atlantis Resources to transform itself into a diversified renewable energy company with significant power generation asset acquisition
In line with the company’s plans to become a renewable energy company, Atlantis plans to raise funds to convert the coal-fired Uskmouth power station so it can burn energy pellets derived from non-recyclable waste products.
The station will have an initial generation capacity of 220 megawatts (MW), with the option to convert a third unit, thus increasing capacity to 330MW.
"I am pleased with the excellent progress we are making on what is a complex transaction involving negotiating land and property agreements, grid access rights, power purchase agreements, a fuel supply agreement with multiple parties, technical support contracts and a relationship agreement that will govern how we might acquire further assets from within the SIMEC portfolio in due course. This is a truly transformational deal for Atlantis and the directors believe that it will be the catalyst to drive rapid growth to quickly become a significant, diversified sustainable energy platform in Europe,” said Tim Cornelius, the chief executive officer of Atlantis.
"The Uskmouth conversion will take up to one million tonnes of non-recyclable waste per year and will convert it into base load energy. Once completed, this will be the largest example of using these waste-derived energy pellets to convert a coal-fired power station, and we believe will provide a template for how this can be replicated across other markets to provide sustainable generation and reduce landfill,” he added.
"This world-leading project makes excellent use of the core skills and resources of the Atlantis team who designed, built and delivered the flagship MeyGen tidal energy project, which has continued to produce record generation results in 2018 and now has over 4,800 MWh of cumulative generation since late 2016. Our tidal division remains very active in developing tidal stream projects in Europe and South East Asia and also a tidal range project in England. Once we have completed this transaction, management is intent on growing SIMEC Atlantis Energy to provide attractive returns to our shareholders as a diversified renewable energy company with a balanced mix of mature operational assets as well as appropriate greenfield development projects," Cornelius concluded.