Atlantis, ScottishPower Renewables join forces for tidal

Atlantis Resources and ScottishPower Renewables are teaming up to a develop a joint portfolio of projects for the fast growing tidal energy sector.

Atlantis’ Scottish project development vehicle, Tidal Power Scotland Ltd (TPSL), will acquire ScottishPower Renewables’ (SPR) portfolio of tidal projects in exchange for a 6% shareholding in TPSL for SPR, according to Atlantis.

As a shareholder, SPR will have a representative on the TPSL board, ensuring that the enlarged portfolio can benefit from its experience in renewable energy development and operations, and demonstrating commitment to the future of tidal power in the UK.

The SPR tidal power portfolio consists of two sites, a 10 MW project at the Sound of Islay in western Scotland and a 100 MW development at the Ness of Duncansby at Scotland’s north eastern tip.

The projects will sit alongside the 398 MW 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, and it is expected to achieve financial close in 2016.

Tim Cornelius, CEO of Atlantis, said: “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 640 MW 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.”

Following completion of the acquisition of Marine Current Turbines from Siemens 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 130 MW, to the TPSL portfolio.

Keith Anderson, CEO of ScottishPower Renewables, said: “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.”

The benefits of the increased scale of development in the expanded portfolio are expected to extend to a stronger supply chain in Scotland and the UK as a whole, attracting inward investment and diversifying exposure to the traditional offshore sector, Atlantis’ press release reads.