TIDMSAE
SIMEC Atlantis Energy Limited
06 September 2019
6 September 2019
SIMEC ATLANTIS ENERGY LIMITED
("Atlantis", the "Company" or the "Group")
Landmark island decarbonisation agreement signed between
Atlantis joint venture and Alderney Electricity Limited
SIMEC Atlantis Energy Limited ("Atlantis"), the global
developer, owner and operator of sustainable energy projects, is
delighted to announce that, via its joint venture Normandie
Hydroliennes, it has signed a heads of terms with Alderney
Electricity Limited ("AEL") to supply the island of Alderney in the
Channel Islands with power from a proposed tidal array in the Raz
Blanchard and help to reduce the island's current reliance on
carbon intensive diesel generation.
Normandie Hydroliennes is a joint venture with regional
investment fund Normandie Participations and local manufacturer
Efinor, through which Atlantis intends to develop, install, and
operate a demonstration tidal array in the Raz Blanchard site off
the coast of Normandy, France. AEL is the principle energy provider
for the Channel Island of Alderney, importing fuel oils and sole
generator and distributor of electricity. The electricity supply is
currently provided entirely by diesel generation from the island's
power plant. Access to other sources of supply, such as the tidally
generated power from the Normandie Hydroliennes array, is expected
to help diversify and decarbonise Alderney's energy mix, providing
the potential for future economic growth without reliance on
diesel.
The heads of terms envisage that AEL and Normandie Hydroliennes
will seek to enter into a 25-year power purchase agreement under
which AEL would purchase a minimum of 5GWh of electricity per year
from Normandie Hydroliennes at a fixed price. This is sufficient to
meet the entire current energy demand of the island. Atlantis is
assessing options to ensure that the island's electricity needs can
be satisfied even during the short periods of slack tide when the
tidal turbines will not be generating power. Additionally, Atlantis
and AEL intend to work together to identify opportunities to
further decarbonise Alderney and create an environment for
sustainable economic growth on the island.
Whilst there are no seabed development rights associated with
this electricity supply agreement, it is hoped that by initially
providing the island with sufficient tidal power to satisfy the
majority of domestic use, this project may be a precursor to a
larger scale array that the island of Alderney can develop in its
territorial waters to export power to both the UK and Europe.
Tim Cornelius, CEO of SIMEC Atlantis, commented:
"We are absolutely delighted to secure AEL as a customer for
electricity generated from the powerful waters of the Raz
Blanchard. This is the first, important step in unlocking the vast
economic potential of the tidal flows around the Channel Islands
and it has taken the forward-thinking management of AEL to make
this happen. We subscribe to their vision of not only seeking to
provide security of supply for the island, but also using this
project as a model for other island communities seeking to
decarbonise and provide new opportunities for economic
resilience.
Working with our project partners in France and making use of
all of the experience garnered from operating the world's largest
tidal array in Scotland, we hope to make Alderney a flagship
example of the Blue Economy at work. This will involve harnessing
the vast power of the ocean in an environmentally responsible way
in partnership with the local community. We hope that this project
will be a blue print for other island nations around the world in
due course"
James Lancaster , MD of Alderney Electricity Limited,
commented:
"Alderney's economy has struggled in recent years but things are
turning around fast; the place has a real buzz about it, so this
news could not come at a better time. The team at Alderney
Electricity, with the full support of the community, has worked
hard in recent years to ensure that our energy assets are fit for
the challenges ahead and we are looking forward to this next phase
in our island's development. For their part, SIMEC Atlantis Energy
and their partners have gone above and beyond to understand what
makes Alderney tick and getting to this point of common interest
and aspiration has been easy.
This is such a great opportunity, bringing so much potential it
is difficult to know where to start. The benefits are immediate;
halving the island's carbon footprint, stable energy pricing and
increased capacity. Much, much more than that, a fixed link to the
continent gives our community the best possible platform for
environmental, social, cultural and economic growth.
Looking to the long term, the Normandie Hydroliennes trial sites
will be the first physical installation of tidal turbines in local
waters and a necessary first step if the Alderney community is ever
going to realise the full potential of our biggest asset, becoming
a net exporter of green, clean energy."
Enquiries:
SIMEC Atlantis Energy Limited via FTI Consulting
Tim Cornelius, Chief Executive Officer
Andrew Dagley, Chief Financial Officer
Cantor Fitzgerald Europe (Nominated
Adviser and Joint Broker) +44 (0)20 7894 7000
Rick Thompson
David Porter
J.P. Morgan Cazenove (Joint Broker)
Michael Wentworth Stanley +44 (0) 207 742 4000
FTI Consulting +44 (0)20 3727 1000
Ben Brewerton
Alex Beagley
James Styles
Molly Stewart
Notes to Editors
The Alderney Race
Tidal flows around the Channel Islands contain a significant
energy resource that if harnessed could provide electrical power to
the Channel Islands, the UK and France. The Alderney Race contains
the majority of the Channel Islands resource, with an estimated
maximum potential of 5 GW of exploitable energy, recognised as some
of the most tidally energetic waters in Europe.
Simec Atlantis Energy
SIMEC Atlantis Energy is the global developer, owner and
operator of sustainable energy projects with a diverse portfolio of
more than 1,000 megawatts in various stages of development. This
includes a 77% stake in the world's largest tidal stream power
project, MeyGen, and 100% ownership of the 220MW Uskmouth power
station conversion project.
https://simecatlantis.com/
Alderney Electricity Limited
AEL a community focussed business, is the main energy provider
for the island of Alderney, northernmost Channel Island, part of
the Bailiwick of Guernsey and home to a community of some 2000
people. AEL imports diesel for generation and transport, unleaded
petrol for transport and kerosene for heating. In the last 4 years
AEL have invested over GBP3.5 million in improvements to grid,
generation and system management infrastructure, creating a smart
platform to reduce carbon footprint and meet future energy
challenges. AEL and community aspire to an energy system that is
exemplar for sustainable isolated communities.
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END
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