Simec Atlantis Energy has signed a contract with UK-based infrastructure fund manager Equitix to sell a 25% stake in Uskmouth Power Station in Wales for £32.9m ($42m) in cash, with plans to initiate a power conversion project at the site.

Based in London, Equitix is a major investor and developer in the UK, as well as in the European infrastructure markets.

The company invests in infrastructure assets across a range of sectors including energy from waste, renewables including offshore transmission, offshore and onshore wind, waste processing and solar-power.

Equitix chief investment officer Hugh Crossley said: “This transaction represents a great opportunity for Equitix to invest in a sector in the UK that fits well with our core infrastructure strategy.

“We are committed to investing for the long-term in projects like Uskmouth Power, which we expect will help us to continue to offer our investors predictable yields through stable, long-term cash flows underpinned by its robust contractual structure.

“Uskmouth Power is the latest addition to Equitix’s significant capabilities in the renewable energy sector. Equitix has built its expertise through bidding, developing and managing renewable energy projects.”

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"Earlier this month, Simec Atlantis revealed plans to convert its Uskmouth Power Station in Wales, UK, from coal-fired to energy pellets."

Earlier this month, Simec Atlantis revealed plans to convert its Uskmouth Power Station in Wales, UK, from coal-fired to energy pellets.

Following the power conversion project, Uskmouth will generate electricity from energy pellets produced from non-recyclable waste destined for landfill.

The power plant will have the capacity to generate 220MW of baseload power. The conversion is expected to take 18 months and the converted station will have an operational lifespan of at least 20 years.

Uskmouth Power has already agreed 20-year power purchase agreements (PPA), as well as a 20-year fuel supply agreement.

Under the PPA agreement, a proportion of the electricity generated at the plant will be sold to the adjacent energy pellet processing facility, and the remainder of the energy will be exported to the grid.

SIMEC Atlantis Energy CEO Tim Cornelius said: “Equitix is one of the most sophisticated and experienced investors in the waste to the energy sector in the UK. They will bring expertise in financing, EPC contracting and negotiation, waste contracting and offtake negotiation to this world leading project.”