Atlantis to Buy ScottishPower Renewables Tidal Energy Assets
Atlantis and ScottishPower Renewables (SPR) are teaming up to develop a joint portfolio of projects for the tidal sector.
Namely, Atlantis’s Scottish project development vehicle, Tidal Power Scotland Limited (TPSL), will acquire SPR’s portfolio of tidal projects in exchange for a 6% shareholding in TPSL for SPR.
As a shareholder, SPR will have a representative on the TPSL board.
The SPR tidal power portfolio consists of two sites, a 10MW project at the Sound of Islay in western Scotland and a 100MW development at the Ness of Duncansby at Scotland’s north eastern tip. The projects will sit alongside the flagship 398MW MeyGen project, which is 85% owned by TPSL.
The project assets include agreements for lease with The Crown Estate for both sites, and the Sound of Islay site also has a grid connection offer and construction consents from the Scottish Ministers. The Sound of Islay project has been awarded €20.7 million of grant funding from the European Commission’s NER300 fund by way of capital and revenue support.
Following completion of the acquisition of Marine Current Turbines Limited from Siemens AG in an all share deal earlier this year, the Atlantis group has agreements for lease for two further Scottish tidal sites, at the Mull of Galloway in south-west Scotland and Brough Ness, to the north of the MeyGen and Ness of Duncansby sites in the Pentland Firth. Atlantis is in the process of adding these two projects, with a combined capacity of 130MW, to the TPSL portfolio.
Tim Cornelius, CEO of Atlantis, commented: “In a transformational 12 months, we have increased our UK projects portfolio by almost 80% in terms of potential capacity, through the acquisition of Marine Current Turbines from Siemens, and this transaction with SPR. By 2022, we aim to have at least 640MW of installed capacity in the UK through development of just our existing portfolio, and in the process we want to help build a UK-based supply chain based on world class manufacturing.”
Keith Anderson, CEO of ScottishPower Renewables, said: “The MeyGen project has moved the tidal power sector forward in Scotland and Atlantis is now the world’s leading developer. This agreement will drive momentum in the sector. We look forward to working with Atlantis and adding value to the Tidal Power Scotland Limited board. With our hard work to design and seek consent for the Islay project, it is now ready to go in to construction, heralding an exciting new chapter in the progression of tidal power.”