Tidal power firm Atlantis Resources is to buy two projects from ScottishPower in a £6.6 million deal as it seeks to create the largest portfolio of its kind in the UK.
Under the all-share agreement, ScottishPower Renewables (SPR) will take a 6 per cent stake in Atlantis subsidiary Tidal Power Scotland Limited (TPSL) and have a representative on its board.
In return, TPSL will take control of SPR’s 10 megawatt project at the Sound of Islay and a 100MW development at the Ness of Duncansby, at Scotland’s north-eastern tip. These will sit alongside the flagship 398MW MeyGen project in the Pentland Firth, which is 85 per cent owned by TPSL – the rest is held by Scottish Enterprise.
Following the purchase of Marine Current Turbines from Siemens earlier this year, Atlantis has agreements for the lease of two further Scottish tidal sites, at the Mull of Galloway and Brough Ness, to the north of the MeyGen site. The firm is in the process of adding these two projects, with a combined capacity of 130MW, to the TPSL portfolio.
Atlantis chief executive Tim Cornelius said: “This is another step in consolidation of the tidal industry as we pull together with SPR to create what is certainly the largest portfolio of tidal power projects in the UK, if not the world.
“By 2022, we aim to have almost 650MW of installed tidal power in Scotland alone, generating clean and predictable energy to meet Scotland’s green energy ambitions, and establishing a new export industry for the future which builds on the existing supply chain and expertise of decades of offshore experience.”
SPR’s Sound of Islay project has been awarded €20.7m (£15m) of grant funding from the European Commission’s NER300 fund and construction is expected to start next year alongside the second phase of the MeyGen project, which has secured NER300 funding of €16.8m.
Cornelius added: “In a transformational 12 months, we have increased our UK projects portfolio by almost 80 per cent in terms of potential capacity, through the acquisition of Marine Current Turbines from Siemens, and this transaction with SPR.”
SPR 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 TPSL 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.”