SIMEC Atlantis Energy Limited Company Update (8063V)
December 16 2021 - 2:00AM
UK Regulatory
TIDMSAE
RNS Number : 8063V
SIMEC Atlantis Energy Limited
16 December 2021
RNS
16 December
SIMEC ATLANTIS ENERGY LIMITED
("SAE", "Atlantis", the "Company" and, together with its
subsidiaries, the "Group")
Company Update
Uskmouth update
SAE is engaging with Welsh Government on the application to vary
our existing environmental permit for the Uskmouth power station.
Having gone through the process with Natural Resource Wales (NRW)
and demonstrated that the conversion will be fully compliant, SAE
looks forward to providing all the information to Welsh Government
to allow it to make its decision. SAE is working with Welsh
Government to understand the timetable in which a decision can be
made.
SAE is exploring opportunities to best extract value from the
Uskmouth site which could be complimentary to the conversion or
stand alone. The options being considered are primarily forms of
renewable energy generation which make use of some of the existing
infrastructure, available land, and grid connections. The options
being considered are in-line with UK and Welsh Government
policies.
International opportunity
Following agreement at COP26 to the phasing down of coal usage,
the opportunity for the conversion of coal fired power stations to
fuel pellets is significant in accelerating and supporting this
global transition. SAE is working with its partners to identify
further opportunities internationally where this exciting solution
can be quickly deployed.
Tidal update
In November 2021, SAE entered into a collaboration agreement
with fellow world leading tidal energy developer, Nova Innovation.
The agreement will see the companies work together to deliver tidal
turbines at the MeyGen site and beyond.
SAE and Nova are the two leading players in tidal stream energy
and operate the world's first offshore tidal array (installed by
Nova in Shetland in 2016) and the world's largest tidal array (the
6MW MeyGen phase 1 project developed by Atlantis in the Pentland
Firth, which includes the world's most powerful tidal stream
turbines). SAE and Nova have delivered over half of the tidal
stream devices operational worldwide and are developing sites in
the UK, Canada, Japan, and France. Both companies deploy subsea
turbines which generate predictable, renewable power with no visual
impact.
SAE and Nova welcomed the announcement by the UK Government to
put a dedicated budget in place for tidal stream energy in the
upcoming Contracts for Difference Allocation Round 4. This signal
of support is a welcome boost to the industry.
MeyGen Operation
SAE continues to work on the re-deployment of the three
turbines, out the water for maintenance, at phase 1 of MeyGen. The
re-deployment of one of the turbines was set back following a crane
failure on the vessel being used for its re-deployment. SAE is
working with the vessel operator to determine the next appropriate
time for deployment. SAE is working with stakeholders to ensure the
remaining two turbines can return to operation as quickly as
possible. The operational fourth turbine continues to exceed
expectations and demonstrates the viability of tidal turbine
technology.
Financial update
The Company has put in place actions that will materially reduce
headcount and monthly operating costs. The impact of these actions
will be seen in our financial year commencing 1 January 2022. Cash
proceeds from the disposal of GHR, announced on 13 December 2021,
combined with the reductions in operating costs, provide the
business with the working capital headroom to deliver on the
opportunities for value from the Uskmouth site noted above and to
deliver on further project opportunities. Both activities are
important for further necessary cash generation during 2022.
The Company noted in the announcement accompanying the Group's
half year results on 28 September 2021 that the business remains
dependent on external financing to develop it key projects. In
combination with the opportunity to deliver value from the Group's
assets, the Board is considering a range of further funding
options.
For more information please contact:
+44 (0) 7739 832
SAE 446
Sean Parsons, Director of
External Affairs
----------------------
Investec Bank PLC - NOMAD +44 (0) 20 7597
and Joint Broker 5970
----------------------
Jeremy Ellis
Ben Griffiths
Shalin Bhamra
----------------------
Arden Partners PLC - Joint
Broker +44 (0) 20 7614 5900
----------------------
Ruari McGirr
Richard Johnson
Simon Johnson
----------------------
Notes to Editors
SAE
SAE is a global developer, owner and operator of sustainable
energy projects with a diverse portfolio in various stages of
development. This includes a 77 per cent. stake in the world's
largest tidal stream power project, MeyGen, 100 per cent. of the
220MW Uskmouth Power Station conversion project and 100 per cent.
of Green Highland Renewables, a leading developer of mini-hydro
projects.
https://www.simecatlantis.com/
More on the MeyGen Project:
https://simecatlantis.com/projects/meygen/
More on the Uskmouth Project:
https://simecatlantis.com/project-development-operation/simec-uskmouth-power/
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