Atlantis Resources – a global colossus in the marine power sector – is raising funds to expand on its success. Its flagship tidal project, MeyGen, started generating electricity off the coast of Scotland late last year and is the world’s first multi-megawatt, multi-turbine tidal power project to begin operations.
The five-year debenture issued by subsidiary Atlantis Ocean Energy – which will pay 8% a year – will provide capital to the group as it makes further improvements to subsea technology and progresses other opportunities in its rapidly growing portfolio.
Atlantis estimates that there is potential for 20 GW of tidal stream power projects in the world, of which over 11 GW is in the UK – much of it in the fast-flowing waters off the coast of Scotland – and comparable to wind power.
The bond offer seeks to raise a minimum of £2 million. Together with the capital raised in Atlantis’ recent £4 million share offer, funds are expected to be used to progress and accelerate the development of the best opportunities in the Atlantis project pipeline
The first phase of the MeyGen project – the largest of its type in the world – is 6 MW (generating enough electricity for the equivalent of 2,600 homes) and is planned to reach its 86 MW aggregate installed capacity by the end of 2019, with further phases of 166 MW and 146 MW aiming to be completed in the next 10 years.
Whilst energy from the tides has been tapped for centuries in traditional tidal mills, it has only recently developed as a technology for generating commercial scale renewable electricity, with previous projects reliant on large barrages.
Tidal turbines are the newest form of the technology; they operate like underwater windmills but driven by the power of consistent, fast-moving marine currents.
Tidal power generation avoids many of the problems associated with other forms of renewable generation — it has the advantage of being completely predictable; the turbines can’t be seen beneath the water; they have a very low impact on marine life; and they don’t interrupt recreational or commercial sailing vessels.
Tim Cornelius, Chief Executive, Atlantis Resources Ltd, said: “This is the most exciting time in the history of tidal power.
“We want to raise further capital to take advantage of our recent success which will help us achieve the huge potential the ocean offers for generating clean, environmentally benign, highly predictable power across the world.
“The success of our flagship Scottish project MeyGen has significantly raised awareness of tidal as one of the most rapidly growing sources of sustainable electricity generation for the future, and this offer is a chance for ordinary investors to help it grow and share in its financial success.”
As well as the MeyGen project in Scotland, Atlantis has other tidal stream projects in the pipeline in France, South Korea, Canada and Indonesia. It is also working to develop a tidal barrage project in the Wyre estuary in the UK and investigating opportunities associated with pumped and battery storage.