Simec Atlantis Energy says it will “be pressing forward” with plans over the next 12 months to convert its Uskmouth coal-fired power station to a 220MW plant fuelled by pellets derived from waste.
The company thinks it can do this using its existing boilers and turbines and commence generation by 2020.
If successful, it plans to keep the South Wales plant operating for a further 20 years.
The UK government has mandated that unabated coal generation must shut down by 2025, though many will have used up running hours under European Directives before that point.
Publishing financial results the company, partially owned by Sanjeev Gupta’s GFG Alliance, declared post tax losses of £10.6m (-£7.6m the prior year).
Simec Atlantis, which also owns the tidal stream MayGen project, and associated development rights, reiterated its call for the “right support” to enable up to 400MW at the MayGen site. Chief executive Tim Cornelius said the firm plans to again bid for a contract for difference (CfD) in 2019.
The company also hopes to secure support from the French government, which is preparing for a commercial tender in the waters off Normandy and Brittany.
Simec Atlantis submitted proposals to the French government in April suggesting 1GW could be delivered by 2025 at similar prices to offshore wind.