N+P Group announced it has signed an agreement with Simec Energy to form a joint venture, targeting the production and supply of waste derived Subcoal pellets to formerly fossil-fuelled power stations. N+P’s patented Subcoal fuel pellet aims to address both the growing demand for the re-use of domestic and industrial waste alongside the increasing demand for sustainable power production, said the company.
To begin with, the JV-Simec Subcoal Fuels Ltd (SSF) has signed a 20-year fuel supply agreement with the Uskmouth power station in South Wales, for the supply of 900,000 tonnes of Subcoal per annum. The JV is also looking to set up at least four new Subcoal production units in the UK to fulfill the demand for this fuel supply agreement. SSF aims to encourage further conversions of fossil fuelled power stations to Subcoal through their supply of environmentally friendly and cost competitive pellets, said the company.
SSF aims to produce alternative fuels based on non-recyclable waste. The Subcoal production process takes advantage of previously unusable, high energy yield non-recyclable waste available within the domestic market. As the waste already contains around 50 percent biomass content, the energy pellets are an ideal, sustainable substitute for fossil fuels in power stations. According to the companies the solution is eco-friendly and on average Subcoal produces 50 percent less CO2 and is significantly cheaper than fossil fuels and normal biomass.
“This joint venture with Simec is a very important milestone in our growth strategy for alternative fuels with the Fuel Supply Agreement as an excellent foundation. We look forward to a strong working relationship with Simec and we are even further enthused regarding expanding this relationship further with many other fuel supply agreements,” said Stijn Jennissen, Commercial Director of N+P Group BV.