Drax has confirmed press reports that it is in talks to buy UK pumped storage, renewable hydro and gas-fired generation assets from Scottish Power parent company, Iberdrola.
“The discussions are preliminary in nature and there can be no certainty of any agreement or the timing or terms of any such agreement,” it stated. “Any potential acquisition would be fully debt funded and subject to shareholder approval.”
Meanwhile Total announced a “major” gas discovery in the Greater Laggan area west of Shetland. It estimates recoverable gas of around a trillion cubic feet, or 10 billion therms. It holds a 60% stake in the Glendronach project, with SSE (20%) and Ineos (20%).
Elsewhere, posting losses of £9m for the year, Simec Atlantis gave further details of its planned conversion of Uskmouth coal power station to a 220MW plant that burns plastic waste pellets.
It will buy the pellets for £4/tonne and has agreements in place whereby it will sell up to 15MW per annum at £130/MWh via a fixed price PPA, and a route to market power purchase agreement containing a floor price of £30.90 per MW.
“By carrying out this conversion we believe we can create value for our shareholders whilst meeting a demand for secure baseload power, as other fossil fuel generators face closure,” said chairman John Neill.
“A successful conversion at Uskmouth can form the blueprint for other power stations that otherwise face obsolescence, providing instead an extended period of valuable service in compliance with up-to-date emissions regulations.”