RNS

28 April 2022

SIMEC ATLANTIS ENERGY LIMITED
("SAE", the "Company" and, together with its subsidiaries, the "Group")

SAE develops new future for Uskmouth site and releases value from existing asset

SAE is pleased to provide an update on the transition of the Uskmouth site into a sustainable energy park, which as a first step includes plans to deliver a Battery Energy Storage System ("BESS"). The Uskmouth site has a 230MW grid connection coupled with significant land and infrastructure that make it a prime location for the delivery of a large-scale, commercially attractive, BESS facility. The widespread integration of BESS into transmission and distribution systems is widely recognised as a key enabler of increased and more rapid integration of intermittent renewable energy into the UK electricity supply.

SAE is at an advanced stage in the BESS development process having submitted the Modification Application to National Grid, which requests that the Uskmouth site's connection agreement be varied to accommodate a BESS facility. SAE has also submitted a screening report to Newport City Council in relation to the construction of a 230MW BESS facility on the former coal stockyard, and is working with an industry leading partner to expedite the delivery of the battery storage facility.

With the development of a BESS at the Uskmouth site, SAE is no longer pursuing the previously announced plans for the Uskmouth Conversion Project and has notified Welsh Government and relevant stakeholders that it will be withdrawing the permit variation application.

Following this decision, SAE has entered a contract to sell certain items of plant that are no longer required for its future plans of the site. A contract, worth £1.2m, has been awarded to a local company, Wye Valley Demolition, to remove the surplus plant and equipment. This contract brings in immediate funding to SAE's business, helping to secure SAE's broader objectives and delivering value for shareholders.

Whilst SAE will not progress the Uskmouth Conversion Project, the need to repurpose coal fired power stations has never been more important in order to reduce emissions, enhance energy security, and reduce the waste being sent to landfill and polluting our oceans. Governments globally are exploring projects that can quickly deliver energy security and independence, and our coal plant conversions have the ability to deliver a quick and cost-effective solution. SAE remains committed to accelerating the transition of existing coal fired generation to lower emissions fuel and is working with it partners to take the vital lessons learnt to other countries where it can make the most impact.

Graham Reid, Chief Executive Officer of SAE commented:

"The team and I are tremendously excited about this next step for the Uskmouth site, which will help deliver the UK's net zero targets, release important value for the business and allow the team to build on the lessons learnt to help countries around the world to achieve the targets of reducing reliance on coal, increasing energy security, and finding long term solutions to the growing waste problem."

For more information please contact:

Notes to Editors

SAE is a global developer, owner and operator of sustainable energy projects with a diverse portfolio in various stages of development.

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