SIMEC ATLANTIS ENERGY LIMITED
(“SAE”, “Atlantis”, the “Company” and, together with its subsidiaries, the “Group”)
SAE is engaging with Welsh Government on the application to vary our existing environmental permit for the Uskmouth power station. Having gone through the process with Natural Resource Wales (NRW) and demonstrated that the conversion will be fully compliant, SAE looks forward to providing all the information to Welsh Government to allow it to make its decision. SAE is working with Welsh Government to understand the timetable in which a decision can be made.
SAE is exploring opportunities to best extract value from the Uskmouth site which could be complimentary to the conversion or stand alone. The options being considered are primarily forms of renewable energy generation which make use of some of the existing infrastructure, available land, and grid connections. The options being considered are in-line with UK and Welsh Government policies.
Following agreement at COP26 to the phasing down of coal usage, the opportunity for the conversion of coal fired power stations to fuel pellets is significant in accelerating and supporting this global transition. SAE is working with its partners to identify further opportunities internationally where this exciting solution can be quickly deployed.
In November 2021, SAE entered into a collaboration agreement with fellow world leading tidal energy developer, Nova Innovation. The agreement will see the companies work together to deliver tidal turbines at the MeyGen site and beyond.
SAE and Nova are the two leading players in tidal stream energy and operate the world’s first offshore tidal array (installed by Nova in Shetland in 2016) and the world’s largest tidal array (the 6MW MeyGen phase 1 project developed by Atlantis in the Pentland Firth, which includes the world’s most powerful tidal stream turbines). SAE and Nova have delivered over half of the tidal stream devices operational worldwide and are developing sites in the UK, Canada, Japan, and France. Both companies deploy subsea turbines which generate predictable, renewable power with no visual impact.
SAE and Nova welcomed the announcement by the UK Government to put a dedicated budget in place for tidal stream energy in the upcoming Contracts for Difference Allocation Round 4. This signal of support is a welcome boost to the industry.
SAE continues to work on the re-deployment of the three turbines, out the water for maintenance, at phase 1 of MeyGen. The re-deployment of one of the turbines was set back following a crane failure on the vessel being used for its re-deployment. SAE is working with the vessel operator to determine the next appropriate time for deployment. SAE is working with stakeholders to ensure the remaining two turbines can return to operation as quickly as possible. The operational fourth turbine continues to exceed expectations and demonstrates the viability of tidal turbine technology.
The Company has put in place actions that will materially reduce headcount and monthly operating costs. The impact of these actions will be seen in our financial year commencing 1 January 2022. Cash proceeds from the disposal of GHR, announced on 13 December 2021, combined with the reductions in operating costs, provide the business with the working capital headroom to deliver on the opportunities for value from the Uskmouth site noted above and to deliver on further project opportunities. Both activities are important for further necessary cash generation during 2022.
The Company noted in the announcement accompanying the Group’s half year results on 28 September 2021 that the business remains dependent on external financing to develop it key projects. In combination with the opportunity to deliver value from the Group’s assets, the Board is considering a range of further funding options.
For more information please contact:
|+44 (0) 7739 832 446
|Sean Parsons, Director of External Affairs
|Investec Bank PLC – NOMAD and Joint Broker
|+44 (0) 20 7597 5970
|Arden Partners PLC – Joint Broker
|+44 (0) 20 7614 5900
Notes to Editors
SAE is a global developer, owner and operator of sustainable energy projects with a diverse portfolio in various stages of development. This includes a 77 per cent. stake in the world’s largest tidal stream power project, MeyGen and 100 per cent. of the 220MW Uskmouth Power Station conversion project.
More on the MeyGen Project: http://saerenewables.com/projects/meygen/
More on the Uskmouth Project: http://saerenewables.com/project-development-operation/simec-uskmouth-power/