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SIMEC Atlantis Energy (Atlantis) has said that it is anticipating a delay in the financial closure for the Uskmouth Power Station conversion project due to the Covid-19 coronavirus pandemic.
However, the company added that it has witnessed minimal disruption to the tidal business due to the pandemic. It also expects to meet current contractual commitments this year.
The Uskmouth project in South Wales involves converting a coal-fired power generation plant into a sustainable facility that will run on biomass and waste plastic.
The targeted financial close date for the project was previously set at Q3 2020. The revised timelines will be announced when available, the company noted.
Currently, essential project development works are continuing at the site to minimise any potential delay.
The Uskmouth site has a live 132kV banking station and 393MW of generating station assets, of which 220MW is currently being converted.
As part of its cost-reduction initiatives and to maintain adequate liquidity, Atlantis chairman and all non-executive directors agreed to a 20% pay cut, with other fees being deferred for the time being.
Also, the company CEO and the executive team will take a 20% salary deferral.
Atlantis has also placed 27 employees on furlough and plans to add more workers on the list in the coming weeks depending on the situation.
Furthermore, the company will maintain a reduced team of engineers to monitor hydro plants under 45 existing contracts.
Construction works of three hydro projects, being built by the Green Highland Renewables (GHR) business, have also been suspended as per government policies.