7th Jul 2016 11:07
LONDON (Alliance News) - Atlantis Resources Ltd on Thursday noted a statement from the Ocean Energy Europe confirming that there will be no impact on existing European Union funding of UK companies as a result of the UK's vote to leave the European Union, after Atlantis said it had signed a landmark deal to combine the MeyGen tidal project in Scotland with a nearby wind farm earlier in the day.
Atlantis said the European Commission has assured the Ocean Energy Europe, the institution which acts as a link between Europe's ocean energy industry, the EU institutions and EU member states, that all existing contracts to award funds from the European Commission and financing contracts are still valid and binding.
Ocean Energy Europe also said that, for as long as the UK is a member of the European Union, companies and organisations in the UK have the right to apply for funding or financing under new calls or programmes, according to Atlantis.
Atlantis on Thursday had said its deal regarding the MeyGen project will ensure the maximum amount of electricity is being generated and exported through the distribution network.
Atlantis holds an 86% stake in the MeyGen tidal project located in the Inner Sound of the Pentland Firth, the body of water that separates the north Scottish mainland from Stroma Island.
The MeyGen project has been in the works for over five years but is set to deliver its first power to the UK in the second half of this year. Electricity generated by the tidal turbines will flow through to the 33.0 kilovolt Ness of Quoys distribution network, which will deliver the power to households and businesses.
The MeyGen project will use up all of the capacity of that distribution network when running at optimal levels, meaning no other generators can use the network until additional capacity has been built "over the next few years", Atlantis said.
Like many sources of renewable energy, the amount of power being generated will vary dependent on environmental conditions - with MeyGen reliant on the speed of the waves. Although that varies, Atlantis said it can estimate the level of generation from the project because of the "predictable and cyclical nature of tidal generation".
As a result, there will be times when the MeyGen project will not be generating at maximum output, potentially freeing up capacity in the distribution network.
To ensure the capacity of the network is being maximised, the partners on the MeyGen project have struck a deal with a small, four-turbine wind farm that is being developed nearby by Lochend Wind Energy Ltd.
The deal will allow Lochend's wind farm to deliver electricity to the grid through the distribution network whenever the MeyGen project is not making full use of the available export capacity, resulting in improved utilisation of the existing grid network without affecting MeyGen's generation potential.
Atlantis said it believes the deal to combine tidal and wind power in this way is the "first such combination" in the UK.
"The arrangement is an important step in demonstrating the feasibility of a diverse blend of sustainable sources of generation as a long term solution to our need for clean, predictable and secure electricity, and shows the potential for optimising the use of existing grid infrastructure assets through intelligent matching of different generation profiles," said Atlantis.
Atlantis shares were down 0.7% at 43.20 on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance and Hannah Boland; [email protected]; @Hannaheboland
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