French Tidal Power Agreement Signed

RNS Number : 0636I

SIMEC Atlantis Energy Limited

21 November 2018

 

 21^st November 2018

SIMEC Atlantis Energy Limited

("SAE" "Atlantis" or the "Company")

French tidal power one step closer to commercialisation as SIMEC Atlantis spearheads Normandie Hydrolienne JV

Joint Venture Agreement with AD NORMANDIE DÉVELOPPEMENT and the regional investment fund NORMANDIE PARTICIPATIONS to include the development of a multi hundred-megawatt tidal stream project in Raz Blanchard, Normandy

Further to last month's announcement, SIMEC Atlantis Energy, a world leading developer of sustainable energy projects, is pleased to confirm that it has now agreed terms to define its collaboration with Development Agency for Normandy (AD Normandie Développement), the regional agency for economic development in Normandy and regional investment fund Normandie Participations for the purpose of developing a phased large-scale tidal power project in the Raz Blanchard, Normandy, as well as fostering the marine industry and local supply chain in the region more generally.

The JV documents were signed by Tim Cornelius and Hervé Morin, President of the Normandy region, in a ceremony which took place in the French Embassy in London on the evening of 20^th November 2018.

The new Joint Venture company, called "Normandie Hydrolienne" will now commence site development, permitting and consenting works to allow for the construction of a phased array of tidal energy projects, in this area of high tidal resource, at scale.

Normandie Hydrolienne will endeavour to energise the first array of tidal energy turbines in 2021 before rolling out larger projects from 2022 which, when potentially combined with projects in Alderney's waters could create a 2GW, fully predicable energy source and the largest planned tidal project in Europe. This pipeline approach will allow the company to work closely with supply chain partners to facilitate rapid Cost of Energy reduction and the fit out of turbine manufacturing facilities in either Cherbourg or Le Havre.

Normandie Hydrolienne, will establish an operational presence in Normandy and Atlantis will hold a majority stake.  The new company is excepted to commence recruitment immediately in Normandy and seeks to work closely with the French Government, all relevant French regulators, the European Commission and the European Investment Bank to deliver Europe's largest tidal power project.

Tim Cornelius, CEO of SIMEC Atlantis, commented:

"I am delighted with the rapid progress made by our respective teams to bring this agreement to fruition. We look forward to building on this momentum by establishing an operational presence and manufacturing base in Normandy and delivering this exciting project.

More widely, this JV cements our place within the global race to bring tidal power to commercialisation. Just as we led the development of our record-breaking MeyGen array in the Pentland Firth, we hope to channel our experience and unlock the potential of the French tidal energy industry.

Normandy has all of the attributes required to deliver large scale tidal power projects - excellent natural resource in close proximity to load, available grid capacity, a feed-in-tariff, an established offshore energy supply chain and port facilities in Cherbourg and Le Have and access to EU funding. We are honoured to be invited to partner with the Region of Normandy and we look forward to establishing France as a world leader in tidal power generation."

Enquiries: SIMEC Atlantis Energy Limited	Via FTI Consulting
Tim Cornelius, Chief Executive Officer
Andrew Dagley, Chief Financial Officer
Cantor Fitzgerald Europe (Nominated Adviser and Joint Broker)	[phone]
Rick Thompson Richard Salmond David Porter
Macquarie Capital (Europe) Limited (Joint Broker)	[phone]
Nick Stamp
FTI Consulting (Media Relations)	[phone] [e-mail]
Ben Brewerton Alex Beagley James Styles

 

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