SIMEC Atlantis Energy has completed the proposed sale of its stake in the Canadian tidal energy joint venture to renewable energy developer DP Energy.
The cash transaction for the joint venture, at the Fundy Ocean Research Center for Energy (FORCE) facility in Nova Scotia, returned C$400,000 (close to $300,000) to SIMEC Atlantis Energy which said it will use the resources to focus on other opportunities in UK, France and Asia.
The sale and purchase agreement has been reached for the sale of remaining 50% interest in Atlantis Operations Canada (AOCL), and following completion, the joint venture will be renamed to Rio Fundo Operations Canada, the companies informed.
Tim Cornelius, Atlantis CEO, said: “I am pleased that we have been able to agree this sale with DP Energy. They have experience and presence in Canada and are well suited to deliver a project in Nova Scotia. This transaction returns value to our shareholders and allows us to focus on the exciting opportunities across the SIMEC group.”
Simon De Pietro, DP Energy Director, added: “DP Energy is delighted work with the Nova Scotia government to promote the development of tidal energy as a major source of renewable electricity production in Canada and we are eager to take on the exciting challenges provided by the tidal resource in the Bay of Fundy.
“The venture adds further depth to the growing portfolio of renewable energy projects of the DP Energy group of companies worldwide.”
DP Energy’s team, who are experienced in renewable energy project development in Canada, will now focus efforts on the development of the tidal stream industry in Nova Scotia.