Atlantis Resources has acquired UK-based marine energy company Marine Current Turbines Ltd, from Siemens in an all-share deal.
Under the agreement, Siemens will receive 9.99% of the company’s enlarged issued share capital as sole consideration for the sale. The deal includes a portfolio of six projects in Wales, Northern Ireland and Southern England, and a development pipeline with a capacity of 200 megawatts.
The MCT projects will increase the Atlantis tidal power project development portfolio to almost 600 MW of potential installed capacity in the UK alone. Atlantis will further assess the MCT portfolio to prioritise the projects to pursue in the near term, and those that it will defer the development of or potentially divest.
The acquisition will lead to the consolidation of the tidal technologies of each company under the Atlantis turbine business. Atlantis will acquire MCT’s 1.2-MW surface piercing tidal SeaGen system, a utility-scale electricity generating tidal stream project that has been operating for 5 years in Northern Ireland generating approximately 10 gigawatt hours of electricity and selling that electricity into the grid.
Atlantis will also acquire MCT’s tidal turbine intellectual property portfolio and the designs for MCT’s turbines, including its next generation 1-MW fully submerged SeaGen turbine and its 1MW SeaGen system designed for floating deployment applications. A dedicated turbine assembly facility to be located at Global Energy’s Nigg Energy Park in Ross-Shire, Scotland, will also be set up.
Atlantis said that the ongoing working capital of MCT will be financed by a loan package provided by leading Scottish energy services contractor Global Energy Group. Interest on the loan will accrue at the rate of 4.5% per annum and be rolled up and repayable in May 2018 at the same time as the principal amount.