Tidal power developer Atlantis has agreed to sell a minority stake in its Scottish tidal development company, Tidal Power Scotland Limited (TPSL), to environmental and marine engineering consultant Deme.
Atlantis said that the sale was subject to certain conditions but that it was expected to go ahead in the coming weeks.
Under the deal, Deme has agreed to pay Atlantis £2M in cash consideration for a 2% stake in TPSL and a right to contribute equity funding to the Sound of Islay project, a tidal power scheme located off the west coast of Scotland.
As part of the transaction, Atlantis and Deme said that they intended to develop a partnership for offshore construction works in the offshore renewables sector.
The sale follows TPSL’s agreement with Scottish Power Renewables UK Limited (SPR) in December 2015 to acquire the 10MW Sound of Islay project and 100MW Ness of Duncansby project in exchange for a 6% shareholding in TPSL.
Following the completion of the Deme and SPR transactions, Atlantis will retain a 92% stake in TPSL.
Atlantis chief executive Tim Cornelius said: “We are excited to welcome Deme as a strategic investor into the TPSL portfolio. As a respected global leader in offshore renewable energy installation, Deme brings a wealth of expertise and we are particularly excited to work closely with them to help deliver our Scottish project pipeline.”
The deal also follows a deal between Atlantis and infrastructure investor Equitix at the beginning of this month. The deal saw Equitix advancing Atlantis’ portfolio of tidal power projects in Scotland, which represented a combined potential capacity of almost 650MW.