SIMEC and N+P to target fossil-fueled power generation market with new pellet joint venture
SIMEC Subcoal Fuels Ltd to produce alternative fuels based on non-recyclable waste
SIMEC Energy, part of Sanjeev Gupta’s GFG Alliance, has signed an agreement with N+P Group to form a joint venture, SIMEC Subcoal Fuels Ltd (SSF), creating a new global alternative fuel supply company to meet the growing demand for greener fuels for (previously) fossil-fueled power stations.
N+P’s patented Subcoal® fuel pellet aims to address both the growing demand for the re-use of domestic and industrial waste alongside the increasing demand for sustainable power production.
The Subcoal® production process takes advantage of previously unusable, high energy yield non-recyclable waste available within the domestic market. As the waste already contains around 50% biomass content, the energy pellet are an ideal, sustainable substitute for fossil fuels in power stations. On average Subcoal® produces 50% less CO2 and is significantly cheaper than fossil fuels and normal biomass.
Existing waste to energy plants already utilise “non-recyclable waste”, however this tends to be of a lower calorific value than the kind of waste used in the Subcoal® process. With Subcoal® focusing on higher energy yielding material both Subcoal® burning plants and waste to energy facilities can work alongside in optimising feedstocks and supply chains for both applications.
As a first step, SSF have signed a Fuel Supply Agreement with Uskmouth Powerstation for the supply of 900,000 tons of Subcoal® per annum for the next 20 years. The JV will also set up at least four new Subcoal® production units in the UK to fulfill the demand for this fuel supply agreement. SSF aims to encourage further conversions of fossil fueled power stations to Subcoal® through their supply of environmentally friendly and cost competitive pellets.
Stijn Jennissen Commercial Director of N+P Group BV commented: “This joint venture with Simec is a very important milestone in our growth strategy for alternative fuels with the Fuel Supply Agreement as an excellent foundation. We look forward to a strong working relationship with Simec and we are even further enthused regarding expanding this relationship further with many other fuel supply agreements.”
Jay Hambro, Chief Executive - Energy and Mining - SIMEC Group said: “This JV is great news for the partners and for the alternative fuel market. At a stroke the Subcoal technology solves the issues of how to utilise waste that otherwise would have gone to landfill and how to meet the growing demand for low-emission, high-calorie fuels. It also ties in perfectly with the plans to convert Uskmouth Power Station and is consistent with our philosophy of maintaining a generation supply chain as close as possible to the industrial point of use it powers.”
The GFG Alliance is a London-headquartered international group of businesses, founded and owned by the British Gupta Family, with a revenue of over US$12 billion and 12,500 staff. It combines energy generation, metal manufacturing, engineering, natural resources and financial services, working together to deliver a common business strategy. The Alliance comprises Liberty - an integrated industrial and metals business –– SIMEC – an energy, resources and infrastructure group - Wyelands –– a banking and financial services arm – and JAHAMA Estates ––the Alliance’s global property division. Through its GREENSTEEL strategy, the GFG Alliance promotes industrial revival based on low-carbon and sustainable production methods.