17th Dec 2015 08:57
LONDON (Alliance News) - Atlantis Resources Ltd Thursday said it has struck a deal to acquire two tidal power assets in Scotland and said it is currently integrating another two tidal power sites to its portfolio following on from its acquisition of Marine Current Turbines earlier this year.
Atlantis Resources has agreed to purchase the 100.0 megawatt Ness of Duncansby and 10.0 megawatt Sound of Islay tidal power sites in Scotland from ScottishPower Renewables (UK) Ltd.
Atlantis plans to add the two projects to its Scottish tidal power development subsidiary Tidal Power Scotland Ltd.
Atlantis has valued the two projects at GBP6.6 million, and said it will issue 3.9 million shares in its tidal subsidiary to ScottishPower in consideration for the deal. Following that, Atlantis will retain a 94% stake in Tidal Power Scotland with ScottishPower owning the other 6%.
The larger Duncansby site is to the east of Atlantis' existing flagship MeyGen project, which in itself will have a power generation capacity of 398.0 megawatts, with the smaller Sound of Islay site being located in western Scotland.
The Sound of Islay site is already connected to the power grid and has construction consent. More importantly, the site has been awarded EUR20.7 million of grant funding from the European Commission's NER300 fund to support capital requirements and revenue.
The NER300 fund is one of the world's largest funding programmes for low-carbon energy projects and initially awarded EUR1.10 billion of funding to new renewable energy projects. Any further projects need to have reached a final investment decision by the end of 2016 and be operational by the end of 2018 in order to qualify.
The company's existing MeyGen project has previously been awarded EUR16.8 million of funding from the NER300 fund, with that project aiming to have the first 6.0 megawatts of power generation capacity available in 2016.
In addition, Atlantis said it is in the process of adding two other tidal projects to its portfolio following on from its acquisition of Marine Current Turbines earlier this year. Atlantis purchased Marine Current Turbines in an all-share deal worth around GBP2.6 million.
Through that deal, it acquired the Mull of Galloway and Brough Ness tidal power sites, which have a combined power generation capacity of 130.0 megawatts, and the company is currently integrating the projects to its subsidiary's portfolio, it said.
Moving forward, Atlantis said it will begin constructing the smaller Sound of Islay site in 2016 in tandem with the second phase development of its flagship MeyGen project.
Atlantis shares were trading down 1.5% to 33.0 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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