Atlantis Resources is to buy the portfolio of tidal projects from ScottishPower Renewables (SPR) in exchange for a shareholding in its Scottish project development arm.
SPR will take a 6% stake Tidal Power Scotland Limited under the terms of the deal. The portfolio consists of 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 398MW MeyGen project is already 85% owned by TPSL.
The Sound of Islay project has recently been awarded €20.7M in European Commission funding and is expected to achieve financial close in 2016. Consents and grid connection are also secured.
Atlantis chief executive Tim Cornelius said: “The UK is now synonymous with tidal power in the same way tech is with Silicon Valley. Thanks to the dedicated support provided by the Department for Energy and Climate Change and the Scottish government, the UK tidal sector is leading the world.
“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.”
ScottishPower Renewables chief executive Keith Anderson 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.”