London-based principal investment firm Equitix, a unit of U.S. Tetragon Financial Management LP, plans to buy a 25 percent stake in renewable energy projects developer SIMEC Atlantis Energy Ltd’s 220 megawatts Uskmouth coal-to-waste-pellets conversion project in Wales.
The project, expected to divest 32.9 million pounds ($42.3 million) stake in cash, involves the conversion of the coal-fired power plant to burn pellets produced from non-recyclable waste and a 20-year fuel supply agreement has already been agreed.
SIMEC Atlantis expects Equitix to bring expertise in financing, engineering, procurement and construction contracting and negotiation, waste contracting and offtake negotiation to the project.
The waste-to-energy plant, once operational, will sell some of its electricity to an adjacent energy pellet processing facility at a fixed price, while the remainder will be exported to the grid, benefiting from an indexed floor price with potential upside from higher market prices.