The company building the 398-MW MeyGen tidal power development off Caithness has been part-merged into the GFG Alliance to create a ‘new global force’ in renewable electricity generation.
As a result, Atlantis Resources, based in Edinburgh, will acquire the Uskmouth coal-fired power station in South Wales from Simec, the energy arm of the GFG Alliance.
In return, Simec has acquired 49.99% share of Atlantis Resources – which will be renamed Simec Atlantis Energy and become part of the GFG Alliance.
As Atlantis is listed on the London Stock Exchange’s AIM market, the deal makes Simec Atlantis Energy the first member of the GFG Alliance to be listed on public markets.
GFG Alliance also owns the Liberty Group which last year also acquired the Dalzell steel plant, near Glasgow.
A statement said: “Simec Atlantis Energy aims to build a highly diversified, global green power enterprise, driving forward the £200 million conversion to renewable energy of Uskmouth power station in South Wales, in addition to the development of the trailblazing Meygen tidal stream project in Scotland and the Wyre Estuary tidal barrage project in Lancashire.”
Sanjeev Gupta, GFG executive chairman, said: “I am delighted to welcome Atlantis to the GFG Alliance with its highly skilled team and ambitious projects.
“This is the first GFG Alliance member to be listed on the public markets, which in itself is a very important milestone for us. In addition, the potential for this business to create enormous value in the renewable energy market in the near term is tangible and very exciting.”
Tim Cornelius, Chief Executive of Atlantis, commented: “Following the establishment of Atlantis Energy earlier this year, we are excited about the transaction and the partnership with Simec and the broader GFG Alliance which will enable us to accelerate our growth and the diversity of our business.
“The establishment of a formal and long term relationship with Simec and the GFG Alliance will be transformational for our company as we seek to create a diversified renewable energy platform of scale.
“We see additional material value for Atlantis shareholders in what we believe is the high quality renewable power asset pipeline to which Atlantis will potentially have access following completion of the transaction.
“Simec and the GFG Alliance are highly respected within the industry and will significantly enhance our visibility on the international stage.”
Jay Hambro, GFG’s chief executive, added: “Atlantis has an excellent track record of delivery in renewable power projects, so our partnership with them will ensure the successful conversion of Uskmouth power station.
“This transaction forms a major part of our ambition to create one gigawatt of renewable energy capacity in the UK within the next three years.”
15 Dec 2017