Atlantis, owner of the world’s largest planned tidal stream energy project, MeyGen, announces that it has agreed terms with a funding syndicate for a funding package for Phase 1A of the MeyGen project.
Total project funding package, which is a combination of equity, debt and grant, will exceed £50m.
The conditions to be met across the funding syndicate for the release of funds are expected to be satisfied shortly. More details on the structure of the funding package are expected to be released when appropriate once these conditions have been satisfied.
Funding syndicate members comprise the UK Government through the Department of Energy & Climate Change, Scottish Enterprise via the Renewable Energy Investment Fund (“REIF”) Highlands & Islands Enterprise, the Crown Estate, and Atlantis. The equity investment by Scottish Enterprise via the Renewable Energy Investment Fund values the MeyGen Project at £51 million.
Construction of the project is expected to commence in Q4 2014 with first power to the grid and revenues earned in H1 2016.
MeyGen is the largest permitted tidal energy project in the world with a current planned capacity of 398MW. The first stage (Phase 1A) of the project will include the installation of 4 x 1.5 megawatt turbines offshore as well as the construction of all onshore infrastructure to support the project, including a substation, a grid connection and the installation of power export cables.
Phase 1A will utilise four 1.5 megawatt turbines, three supplied by Andritz Hydro Hammerfest and one Lockheed Martin-designed turbine supplied by Atlantis.
MeyGen will be the world’s first commercial-scale multi-turbine tidal energy project to come on stream, with first power targeted for H1 2016.
With many tidal project leases having been secured throughout the UK and around the world by various developers, the financial close of MeyGen is likely to be a catalyst for the emergence of a new asset class of renewable energy generation, making this an industry defining event; Atlantis will remain at the forefront of worldwide developments in the tidal power industry with the benefit of its first mover advantage and know-how in both project development and turbine design.
Once operational, approximately 50 direct jobs will be created during Phase 1A of the project, with a further 70 indirect roles created throughout the supply chain. 60 percent of the investment will be invested in the UK supply chain.
When fully completed, the project will include 269 turbines submerged on the seabed, generating enough power for almost 200,000 homes in Scotland. The first phase of the project (61 turbines / 86MW) is expected to provide enough electricity for 42,000 homes in Scotland.
Press Release, August 22, 2014