ScottishPower Renewables has joined forces with Singapore-headquartered Atlantis Resources to establish the largest tidal stream portfolio in the UK.
Atlantis and ScottishPower Renewables (UK) Limited (“SPR”) are teaming up to develop a joint portfolio of projects for the fast growing tidal sector, Atlantis has announced. 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, and demonstrating commitment to the future of tidal power in the UK.
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 north eastern 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 €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, this project is the most advanced commercial scale project in the UK after MeyGen, and is expected to achieve financial close in 2016.
Atlantis, through TPSL, is the driving force behind the growing tidal sector in the UK. TPSL has the largest tidal stream portfolio in the UK, which is at the forefront of this burgeoning industry.
Tim Cornelius, CEO of Atlantis, commented: “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.”
By Jake Frith