- All-share purchase of two sites valued at 6.6 million pounds
- Both projects already have lease agreements from Crown Estate
Atlantis Resources Ltd., which has one of the world’s biggest collections of tidal-energy assets, agreed to buy two projects from ScottishPower Renewables Ltd. in an all-share deal.
Atlantis affiliate Tidal Power Scotland Ltd. will pay in stock valued at 6.6 million pounds ($9.9 million) for the Sound of Islay and Ness of Duncansby sites, according to a regulatory statement on Thursday.
“This is another step in consolidation of the tidal industry,” Atlantis Chief Executive Officer Tim Cornelius said in the statement. “By 2022, we aim to have almost 650 megawatts of installed tidal power in Scotland alone.”
Scotland aims to get 100 percent of its power from renewables by the end of the decade, up from more than 50 percent last year. The country has as much as a quarter of Europe’s tidal resources and about 10 percent of its wave-power potential, according to the Scottish government.
Atlantis owns Marine Current Turbines Ltd., which Siemens AG sold in an all-share deal earlier this year.
The latest transaction will give ScottishPower a 6 percent stake in Tidal Power Scotland, leaving Atlantis with the rest. The deal is subject to conditions that Atlantis expects to be met in early 2016.
The 10-megawatt Sound of Islay site in western Scotland has a grid-connection offer and construction consents from Scottish ministers. Building work is due to begin next year. The 100-megawatt Ness of Duncansby site is immediately to the east of Atlantis’s 398-megawatt MeyGen project in northeastern Scotland.
The projects include lease agreements with the U.K.’s Crown Estate, which owns the seabed at both sites.