N+P Group has announced a joint venture with energy business Simec, targeting the production and supply of waste derived Subcoal pellets to formerly coal fired power stations.
And, the joint venture – named Simec Subcoal Fuels Ltd (SSF) – has signed a 20-year fuel supply agreement with the Uskmouth power station in South Wales, to supply 900,000 tonnes of Subcoal per annum.
The companies are now looking establish at least four new Subcoal production units in the UK to fulfill the agreement with Uskmouth.
Subcoal pellets are produced from high calorific value residual (non-recyclable) waste. The “highly engineered” pellets are used as fuel in energy intensive industries such as in cement kilns or power plants as a substitute to fossil fuels.
Last year, it was announced that N+P would be opening its first UK production facility on Teeside to produce Subcoal (see letsrecycle.com story).
With SSF, both parties said they are aiming to create a new global fuel supply company that will produce alternative fuels, based on non-recyclable waste streams to fossil fuelled power stations.
Using Subcoal will contribute to a more “environmental friendly way” of generating power, with over 50% biomass which contributes to a reduction in CO2 emissions, the companies said. And, the use of Subcoal as a fuel in existing coal fired power stations will “significantly increase the plant life, due to the cleaner economic and environmental benefits resulting with the use of such fuels,” they added.
According to the companies, Subcoal provides a solution to the current “dilemma” facing the recycling sector regarding what can be done with high calorific value material currently being disposed of to landfill.
The SIMEC Group, based in Hong Kong, is an international energy, infrastructure and natural resources business, founded 50 years ago. Its activities span renewable energy generation, mining, shipping and commodities trading through its key hubs in Europe, the Middle East, Asia and Australia.
In 2016, Simec unveiled its plan to turn the existing 395 megawatt Uskmouth Power Station Newport into a centre of excellence for Advanced Conversion Technologies, using biomass, waste and other sustainable energy sources.
“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. “Stijn Jennissen
Commenting on today’s announcement, 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.”
With the parent company based in the Netherlands, N+P produces and supplies alternative fuels to a number of industries including the power generation sector. The company reports to move more than 2,000,000 tonnes of waste streams from various industries from all over Europe.