Atlantis Resources, Dongfang Begin Tidal Turbine Testing in PRC

Atlantis Resources Limited, a vertically integrated turbine supplier and project owner in the tidal power industry, has reached an agreement with Dongfang Electrical Machinery Co. Limited (Dongfang) for the execution of onshore tidal turbine testing in Hangzhou in the People’s Republic of China (PRC). 

It is intended that the testing programme will be carried out prior to the deployment, later this year, of the Group’s 1MW AR1000 turbine at an offshore demonstration project in Zhejiang Province, developed by the China Energy Conservation and Environmental Protection Group (“CECEP”).  The AR1000 will be the first commercial scale tidal stream turbine to be deployed in the PRC and is expected to be a key milestone in the growth of the domestic tidal power sector.

This follows the announcement last month that Atlantis has formally commenced a detailed design and systems integration agreement with Lockheed Martin to develop the Group’s most advanced tidal turbine, the 1.5 megawatt AR1500.

Atlantis and Dongfang have a strategic agreement for the development of tidal power, including the provision of low cost supply chain solutions for mass production of the Group’s AR1500 turbine, and cooperation to stimulate the tidal power market in the PRC.

Additionally, Atlantis and Dongfang are now expanding this relationship and have executed a memorandum of understanding for the appointment of Atlantis as a sales agent for Dongfang’s related products in markets outside the PRC.

This agency agreement will encompass Dongfang’s traditional hydropower, pumped storage and tidal range technology solutions, and reflects Dongfang’s recognition of Atlantis’s capabilities in global project development and market origination.

Tim Cornelius, Chief Executive of Atlantis, said: “This extension to our worldwide strategic partnership with Dongfang is significant for Atlantis given the potential size of the Chinese tidal power market. As well as helping to develop our supply chain and identify sales and project development opportunities in China, the agency agreement will have a near-term positive impact on our cash flows as we will receive a commission on the sale of any product or service secured by Dongfang from an Atlantis initiated opportunity. This further underlines Atlantis’s position as one of the leading players in the emerging global tidal power sector and allows Atlantis to make use of its global network to seek new sales opportunities in new markets including traditional hydro and pumped storage.”