Atlantis Resources, the Scottish firm behind the MeyGen tidal-energy project in the Pentland Firth, has followed up a £6.5million cash injection with new joint-venture in Indonesia.
Edinburgh-based Atlantis said yesterday it was to develop 150 megawatts (MW) of tidal energy in the country in partnership with SBS International, a privately owned marine, subsea and renewable-energy developer which has been studying the potential of ocean resources for tidal-stream devices around the Indonesian archipelago since 2013.
Atlantis added its “memorandum of understanding” with SPS would allow their joint-venture to build a £520million-plus tidal scheme in stages.
SBS has completed a feasibility study and the project will be supported by a 25-year power purchase agreement with state-owned electricity company Perusahaan Listrik Negara.
Atlantis boasts the largest portfolio of tidal power projects in the UK, representing a combined potential capacity of almost 700MW, in addition to its other development projects throughout China, Canada, India and other parts of the world.
Chief executive Tim Cornelius said: “The Indonesian archipelago of over 17,000 islands represents an extremely promising tidal stream resource.
“We are looking forward to working with SBS on this exciting project that offers the potential to provide highly predictable tidal stream power generation to the people of Indonesia.”
On Wednesday, Atlantis announced it had raised £6.5million from a share placement.
The company, which has an 85% stake in MeyGen, also revealed it was in the process of finalising annual results showing maiden profits in 2015.
Proceeds from the sale of nearly 12million new shares in the business – at 55p per unit – will be used to fund development activities across the Atlantis project portfolio and also working capital.
The first phase of the MeyGen scheme is forecast to produce first power in the second half of this year, paving the way for two further stages which are expected to increase the generating capacity to 86MW. Longer term, an array totalling 398MW is expected to generate enough electricity to power 175,000 homes.