SIMEC Atlantis Energy

SIMEC Atlantis advances connection strategy at MeyGen tidal power project

The company has a 77% stake in the world's largest tidal stream power project, MeyGen, and the conversion of the 220MW Uskmouth Power Station

Underwater turbine
"The iconic MeyGen project is once again at the forefront of the development of the marine energy industry in Europe"

SIMEC Atlantis Energy Limited (LON:SAE), has announced further progress on the MeyGen tidal energy extension activities known as Project Stroma.

The diversified sustainable energy generation company has awarded a contract to sub-sea engineering specialists ETA Limited for the manufacture and delivery of the world's most advanced sub-sea tidal turbine connection system.

READ: SIM​EC Atlantis Energy redeploys turbines at MeyGen, completes sale of Canadian JV stake

The sub-sea hub will allow multiple turbines to be connected to a single power export cable, which will significantly reduce the costs associated with a connection to the national power grid.

The length of power export cable, as well as the amount of onshore conversion equipment required for grid connection, will be significantly reduced, as will the amount of horizontal directional drilling required and the amount of vessel time required for cable installation, SIMEC Atlantis said.

“Leveraging technologies developed for the oil & gas and offshore wind industries, we have adapted tested products to our new turbine design to deliver an approximate 50% reduction in the CAPEX [capital expenditure] costs on a per turbine basis associated with turbine grid connection compared to MeyGen Phase 1,” said Drew Blaxland, the director of the company’s turbine and engineering services division.

“Further, this sub-sea hub has direct application to the growing floating offshore wind market globally. An adaption of our hub will be able to connect multiple floating offshore wind turbines in deep water, helping this industry on its cost down trajectory," he added.

The company’s management is currently exploring a number of funding options for the capital expenditure associated with Project Stroma, including a potential issue of the company's first listed bond.

Tim Cornelius, the chief executive officer of the company, said the issue of a bond would allow SIMEC Atlantis to progress its plans to secure contracts for difference allocations for future phases of the MeyGen project.


Quick facts: SIMEC Atlantis Energy

Price: £0.12

Market: AIM
Market Cap: £49.34 m


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