Atlantis Resources and ScottishPower Renewables (SPR) are teaming up to develop a joint portfolio of projects for the growing tidal sector, announced Atlantis. Atlantis’s Scottish project development vehicle, Tidal Power Scotland Limited (TPSL), will acquire SPR’s portfolio of tidal projects in exchange for a 6% shareholding in TPSL for SPR. 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.
The SPR tidal power portfolio consists of two sites, a 10MW project at the Sound of Islay in western Scotland and a 100MW development at the Ness of Duncansby at Scotland’s northeastern tip. The projects will sit alongside the flagship 398MW 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 US$22.4 million (€20.7 million) of grant funding from the European Commission’s NER300 fund by way of capital and revenue support. With consents, grid connection and grants secured, the project is expected to achieve financial close in 2016.
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 southwest 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 130MW, to the TPSL portfolio.
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.
“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,” said Tim Cornelius, CEO of Atlantis. “By 2022, we aim to have at least 640MW of installed capacity in the UK through development of just our existing portfolio.”