Atlantis, the tidal power Colossus, has sold a 2% stake in its Tidal Power Scotland Ltd development company to Belgian offshore construction specialist DEME Group for £2 million – valuing the venture at £100 million.
Less than six months ago, Atlantis– which is building the world’s largest subsea turbine power generating array in the Pentland Firth – bought these assets (which primarily comprise the Sound of Islay and Ness of Duncansby sites tidal development sites) for just £6.6 million in a share-swop with Scottish Power Renewables.
DEME has agreed to pay Atlantis £2 million in cash consideration for a 2% stake in TPSL and a right to contribute equity funding to the Sound of Islay project.
Atlantis and the DEME group intend to develop a partnership for offshore construction works to draw on the experience and expertise of the DEME group in the offshore renewables sector for the benefit of the company’s power portfolio build-out in Scotland.
GeoSea NV – DEME’s specialist offshore construction arm – has 35 years of experience in complex offshore construction projects.
The DEME group has a fleet of over 90 major construction vessels and the group’s turnover in 2015 was €2.35 billion. It is already an existing investor in marine energy projects through DEME Blue Energy – a partnership between DEME and PMV (Participatie Maatshappij Vlaanderen).
Tim Cornelius, Atlantis CEO, commented: “We are excited to welcome DEME as a strategic investor into the TPSL portfolio.As a respected global leader in offshore renewable energy installation, DEME brings a wealth of expertise and we are particularly excited to work closely with them to help deliver our Scottish project pipeline.”
Alain Bernard, CEO of DEME group, added: “This transaction is a vital move for the DEME group in fulfilling its ambitions to be at the forefront of the growing tidal energy industry. Moreover, it consolidates the company’s presence in the UK as DEME’s involvement in the UK offshore business dates back to the early years of offshore wind.