Tidal power developer Atlantis Resources has agreed to acquire the 363MW Uskmouth coal power station in South Wales, UK owned by SIMEC Uskmouth Power (SUP), a subsidiary of SIMEC Energy.
In return, Atlantis Resources will issue 49.99% of its shares to SIMEC Energy, which is part of GFG Alliance owned by billionaire Sanjeev Gupta.
Following the transaction, Atlantis will be renamed SIMEC Atlantis Energy with an objective to become a new force in the global renewable energy market and will come under the GFG Alliance.
Atlantis CEO Tim Cornelius said: “Following the establishment of Atlantis Energy earlier this year, we are excited about the Transaction and the partnership with SIMEC and the broader GFG Alliance which will enable us to accelerate our growth and the diversity of our business.
“The acquisition of SUP, together with the 20 year power purchase agreements and 20 year fuel supply agreement, is significant in itself and we believe the Transaction will deliver material value to Atlantis Shareholders through the robust contractual structure we intend to put in place.”
SIMEC Atlantis Energy will look to create a highly-diversified, global green power enterprise. It is planned to take ahead the £200m conversion to renewable energy of the Uskmouth Power Station.
The 363MW Uskmouth power plant located in Newport features three units of 121MW each. Out of this, 220MW of capacity is proposed to be converted to use an end-of-waste energy pellet as fuel post conversion.
The third unit of the Uskmouth power plant will not be converted.
SIMEC chief investment officer Jay Hambro said: “Since acquiring SUP, we have invested significant funds in its development and are fully committed to delivering its conversion to use an end-of-waste energy pellet rather than coal.
“We want to see SIMEC Atlantis Energy Limited accelerate its development into a diversified renewable energy company of material scale across the renewables sector and we believe that our support will achieve this.”
Additionally, SIMEC Atlantis Energy will also develop the 398MW Meygen tidal stream project in Scotland along with the Wyre Estuary tidal barrage project in Lancashire.
The new company will also pursue buying of other power generation assets of SIMEC Energy in the future and work with SIMEC in developing new power facilities.
Image: SIMEC Energy has struck a deal with tidal power developer Atlantis Resources. Photo: courtesy of SIMEC.