Atlantis has acquired Marine Current Turbines (MCT) from Siemens in an all share deal.
The acquisition is conditional upon certain conditions precedent being satisfied.
It includes seabed rights, existing projects, staff and intellectual property.
Atlantis will acquire MCT’s tidal turbine intellectual property portfolio and the designs for MCT’s turbines.
This includes its next generation 1 MW fully submerged SeaGen turbine ‘SeaGen U’ and its 1 MW SeaGen system designed for floating deployment applications ‘SeaGen F’.
It is possible that floating SeaGen systems could be deployed on sites where AR1500 turbines will be deployed to increase total installed capacity on a project location.
With this acquisition, Atlantis has added six projects expanding its operations to Wales, Northern Ireland and Southern England and increased the company’s project development capacity to nearly 600 MW with MCT’s six tidal lease agreements for tidal sites throughout the UK, with a total potential capacity of nearly 200 MW.
As consideration for the sale of MCT, Siemens will be issued with new ordinary shares in Atlantis on completion which will provide Siemens with a 9.99 percent shareholding in Atlantis.
Tim Cornelius, CEO of Atlantis, said: “Marine Current Turbines has developed a world leading tidal turbine, a world class engineering team, unrivalled expertise in long-term turbine operations and testing through its SeaGen installation at Strangford Lough and an impressive portfolio of projects under development across the UK. We welcome Siemens as an Atlantis shareholder. This deal sees two industry leaders, MCT and Atlantis, combining to underpin the UK’s position as one of Europe’s tidal power leaders.”
Achim Woerner, CEO Hydro & Ocean Power at Siemens Wind Power and Renewables Division, commented: “We are pleased that Atlantis, one of the strongest players in the comparatively new segment of tidal stream, has acquired Marine Current Turbines. This will enable the areas of competence of Marine Current Turbines, in particular its engineering capabilities, to be retained. Siemens will continue to cooperate with respect to component supply with MCT / Atlantis in the future.”
Late in 2014, Siemenes decided to leave tidal energy business because the sector has not developed at the speed Siemens expected, and to sell Marine Current Turbines.
Ongoing working capital of MCT will be financed by a loan package provided by leading Scottish energy services contractor Global Energy Group.
Image: Atlantis Resources