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04/04/2016

£500m to be invested in Scottish tidal projects

Words: Laura Edgar

Tidal power company Atlantic Resources ‘anticipates’ capital investment of £500 million into its Scottish projects over the next two years after agreeing a partnership with an infrastructure asset manager aimed at advancing its portfolio.

The money will come from a combination of debt, equity and grants, said Atlantis.

The company has entered into a partnership with Equitix, a developer, investor and fund manager of infrastructure assets.

The partnership will see the two companies work together to advance Atlantis’s portfolio of tidal power projects in Scotland, which Atlantis said could have a capacity of 650 megawatts.

Equitix, through its managed funds, intends to acquire at least 25 per cent of each Atlantis project vehicle at its financial close. The agreement will see Equitix work with Atlantis to prepare the projects for investment of the construction capital and achievement of financial close.

Tim Cornelius, CEO of Atlantis, said: "This agreement with Equitix is an important step for us in engaging a partner with both vital experience of large infrastructure projects and access to extensive capital, coupled with a desire to work with us to accelerate the further development of the UK’s tidal power industry.”

Of the £500 million Atlantis says it will invest, £51 million is already committed for the current construction of the first phase of the MeyGen project in the Inner Sound of the Pentland Firth, which could see up 269 turbines submerged on the sea bed.

Image credit | Shutterstock

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