Sustainable energy generation company Simec Atlantis Energy (LON: SAE) said on Tuesday that it has formally entered into a joint venture agreement with Netherlands based N+P Group.
Back in August, Simec announced that an agreement was being worked on with the fuel production company.
The deal will see the joint venture, named NPA Fuels Limited, produce, market, and deliver waste-derived fuel products to converted coal-fired power station operators throughout the UK, and the Uskmouth project. Simec will own 50% of the new company.
Simec said that NPA will produce Subcoal, a waste-derived fuel product for sale to Atlantis owned assets as well as to other converted UK coal-fired power stations.
NPA is currently in the process of moving forward with planning, permitting and consenting for several fuel production plants in the UK. They are also negotiating land and rail rights at several different locations, including Greenfield and other existing facilities.
“The waste-derived fuel pellet developed by N+P Group over the past few years as part of Atlantis' multi-million pound R&D and testing program has been conducted in collaboration with multiple academic institutions and with the assistance of Mitsubishi Power Europe. This work has changed the way the industry views ageing coal-fired assets, which are soon to be retired,” said Timothy Cornelius, Simec’s CEO.
Simec’s stock price is currently priced at 17.5p, an 18.34% rise from Monday’s close at 14.8p per share.
