Simec Atlantis has entered into talks with data center development specialist TechRE to explore options to locate edge and hyperscale data centers within the Uskmouth power station development area at Newport in Wales.
Further, Atlantis has engaged TechRE to explore a proposal that power could be delivered through a private wire network under a long-term power purchase agreement to owners and operators of the data centers built on site at Uskmouth.
The Uskmouth project seeks to re-purpose a coal-fired power station to operate using waste-derived fuel pellets consisting of 50% waste biomass materials with the remaining fuel pellet content made up of plastic wastes which are unsuitable for recycling. Following full conversion, the Uskmouth power station is expected to generate 220MW of baseload electricity from this sustainable fuel source.
Having adjusted for current expected COVID-19 disruptions, Atlantis has determined, in consultation with stakeholders and potential financiers, that the project will now be developed in two phases. The initial phase will comprise the conversion of the first 110MW generation unit at the power station (“Phase 1”), and upon successful commissioning of Phase 1 it is intended that a second unit (“Phase 2”) will be converted to increase the total net output from the station to 220MW.
As announced in June 2020 following successful completion of large-scale combustion testing, final design studies are now underway to inform the scope of the Engineering, Procurement and Construction contract. The EPC tender process will be a global tender process for qualified participants. The EPC contract negotiations are now expected to conclude early in the first quarter of 2021 with an announcement of the successful bidder and/or consortium shortly thereafter. The terms and conditions of the EPC contract will determine the final structure of the project finance package
Tim Cornelius, CEO of SIMEC Atlantis Energy, commented, “The continued focus on the transition to a carbon neutral economy has received fresh impetus as a result of the impact of COVID-19 and countries around the world are looking at the opportunities presented by a move to a carbon free economy as a way to create jobs and generate sustainable prosperity. The Uskmouth project is leading the way to a sustainable future and we are delighted that so much progress has been able to be made on this important project despite the disruptions we have all experienced so far during 2020.”
Henry Sutton, head of EMEA Projects at TechRE Consulting, added,“TechRE is delighted to be working with Atlantis to help develop initial designs and identify potential anchor customers for an exciting new data center campus to be located next to, and sustainably and responsibly powered by, this ground breaking conversion project.
Data center end users are increasingly requiring access to renewable power to power the digital economy and a key competitive advantage from this project will be the lower power costs generated by a sustainable supply provided by private wire connection. The Uskmouth site will be attractive for hyperscale, wholsesale colocation and internet edge operators and will form a unique, fully connected and sustainable tech hub.”