SIMEC Atlantis Energy eyes positive 2021 across all divisions

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SIMEC Atlantis Energy Ltd (LON:SAE) chief executive Tim Cornelius struck a positive and optimistic note as the renewable power firm provided an operations update to investors.

“2020 has presented significant challenges for us all but it has also presented many opportunities of which we have been able to take advantage with the support of our shareholders and stakeholders,” Cornelius said.

“As a result, 2021 is looking to be a very positive year of milestone achievements across all of our divisions.”

The company is expecting to advance planning and final permitting for the Uskmouth power station project in the first half of 2021. Presently, the company is responding to final information requests from the planning authorities, with the assistance of Mitsubishi.

READ: SIMEC Atlantis takes tidal turbine tech to manufacturing

At the same time contract negotiations with shortlisted contractors are said to be progressing well, and, the company said it expects to announce its selection in early 2021.

Negotiations are also underway with potential customers too, with the company talking to local industrial energy users over possible private wire power purchase agreements.

The company also noted that it is advancing its joint venture to potentially produce waste-derived fuel pellets to be used at Uskmouth and future UK coal-fired power station conversion projects.

This venture is in partnership with NPA Fuels which is presently in talks over land and rail rights at several different UK locations, both greenfield and existing facilities. Planning for a greenfield site would take four to six months to obtain, it said, and such approval would be needed prior to a project reaching financial close. It, therefore, anticipates that it is possible that this could come later than was previously targeted for the second half of 2021.

In tidal power, the company confirmed that the flagship MyGen project has now exported some 35 gigawatts to the UK grid.

Some recent operational challenges at MyGen have resulted in the need for one 1.5 megawatt turbine to be retrieved for repair during early 2021 and the company said it will at the same time redeploy an AR1500 turbine, which has been repaired recently.

The company also recently announced its plans to participate in the UK Contract for Difference round 4, which opens in late 2021.

It added that, in Japan, it is on-target to deliver and install an AR500 turbine system to Japan’s Kyuden Mirai Energy’s demonstrator project, in the straits of Naru Island, part of the Goto island chain.

The turbine is presently in transit and is due to be installed in the first quarter of 2021.

Lastly, the company highlighted that its hydropower division continues to grow its asset management portfolio whilst its construction team is set to commission three hydro projects, representing some 5.8 MW in total, in the New Year.

It also expects to start work in January on the Blackwater Dam project, which will see it deliver a 740kW project for customer, Equitix.

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