As part of this plan, SAE has issued a tender to market to transform the Uskmouth into a pellet-burning facility by the end of 2020.
Upon completion of the conversion project, the power station will export 220MW of baseload power to the grid using an end-of-waste energy pellet.
The company, which was formerly known as Atlantis Resources, has successfully completed milling trials in Germany on the pellets that will replace coal at the power genration plant.
Dutch fuel pellet supplier N+P Group will be responsible for the supply of Subcoal pallets for the power plant. The pallets will be made from a combination of biogenic waste and non-recyclable plastic.
SAE said that the milling trials will inform the final design of the combustion system, which will be retrofitted to the existing power station.
SAE CEO Tim Cornelius said: “The Uskmouth conversion project has a 20 year power purchase agreement and a 20 year fuel supply agreement in place and will have a lower levelized cost of generation which will allow us to deliver high margins on power sales.
“This project will be the catalyst for further conversions throughout Europe as SAE seeks to establish itself as a leading independent sustainable energy generation company.”
Planned to commence production in Q4 2020, the converted station will have an operational life of 20 years.
Uskmouth conversion head Ernie Rowe said: “We are looking forward to announcing the award of the FEED contract and following FEED, we will be tendering for the EPC contract ahead of what is anticipated to be an 18 month construction process.
“This project is of huge international interest; with governments and utilities around the world being forced to close down coal-fired power stations, this conversion will offer a new alternative to decommissioning.”
SAE expects the conversion project to become a prototype for similar projects in the future.
It is also in discussions with plant owners and operators in Europe, Australia, Asia and the US for future conversions to extend the economic life of power generation facilities.
