Simec Atlantis Energy (SAE) said it plans to focus on its tidal power project in the Pentland Firth following the sale of its services division to managers.
The Edinburgh-based firm has sold a majority stake in its Advanced Tidal Engineering and Services division (ATES) in a management buyout for an undisclosed sum.
SAE said it was “committed to delivering the maximum return” for its shareholders and focusing its efforts on the development of the MeyGen site after it won backing for the world’s largest tidal array in the UK Government’s latest Contracts for Difference auction.
The deal will allow the newly-named Proteus Marine Renewables to grow its product and services offering across a scope of marine renewables while keeping its immediate focus on tidal energy.
SAE has retained a minority shareholding in Proteus and will have a formal collaboration agreement.
SAE has also agreed contracts to ensure the provision of ongoing services that will allow Proteus to provide continued support to the MeyGen operating tidal array.
Graham Reid, CEO of SAE said: “We are proud to have developed the ATES business into what it is today and wish Drew (Proteus CEO Drew Blaxland) and the team every success in the future.
‘Business as usual’ for existing tidal power projects
“A key part of the sale is the agreements in place that ensure it is business as usual for our existing tidal power projects but allows our focus to be on the delivery of the MeyGen site, the home of tidal energy.”
For his part, Mr Blaxland added: “The formation of Proteus and the injection of private equity capital will give both companies the focus and means to build a pathway to affordable tidal stream power.”
In addition to servicing its responsibilities at MeyGen, Proteus will also be focused on completing its next round of technology.
Key locations include Japan and France, where Proteus is now the majority shareholder in Normandie Hydroliennes, which aims to deploy a 12MW pilot array in 2025, as part of the EC’s target of 1GW of marine energy by 2030.
Shares in the AIM-listed SAE closed over 9% down on Monday.