MeyGen Operational Update

RNS Number : 8537A

SIMEC Atlantis Energy Limited

27 January 2020

 

The information contained in this announcement is inside information under the Market Abuse Regulation (EU) No 596 / 2014. The person responsible for arranging the release of this announcement on behalf of SIMEC Atlantis Energy Limited is Tim Cornelius, Chief Executive Officer of SIMEC Atlantis Energy Limited.

Monday 27 January 2020

SIMEC ATLANTIS ENERGY LIMITED

("Atlantis" or the "Company")

MeyGen Operational Update

SIMEC Atlantis Energy Limited ("Atlantis"), the global developer, owner and operator of sustainable energy projects, is pleased to announce an operational update for MeyGen, the world's largest operational tidal stream array.

MeyGen's 2019 performance represents the longest period of uninterrupted generation from a multi-megawatt tidal turbine array ever achieved.

Operational Highlights

·    MeyGen has now exported 24.7GWh of predictable renewable electricity to the national grid

·    In 2019 alone, MeyGen exported over 13.8GWh of predictable renewable electricity, equivalent to the average annual electricity consumption of around 3800 typical UK homes generating a revenue of £3.9m.

·    Phase 1A of MeyGen operates with 5 ROCs and had generated total revenues since operations commenced of £7.1m as at the end of 2019.

·    The AR1500 turbine is due to undergo maintenance and will be transported to land for servicing and upgrade work at the end of this month - redeployment at MeyGen is targeted for the Spring. The upgrade will increase the turbines revenue by 4% with no increase in the turbines operating cost.

·    During 2019, Atlantis announced its intention to develop the next phase of its MeyGen array which will see an additional 80MW of tidal capacity added to the existing project site between the island of Stroma and the mainland. Atlantis intends to design, consent and build the world's first ocean-powered data centre near the MeyGen site, connected to the tidal array via a private wire. A concept study has been completed with design underway to include a connection to the Celtic Norse subsea fibre optic cable currently in development, significantly enhancing Scotland's international data connectivity. Atlantis is exploring connections to other international fibre optic cables as well.

·    The tidal array's private wire structure with the data centre will provide a route to market for the next phase of the project in lieu of subsidy support for tidal power in the United Kingdom. 

Tim Cornelius, CEO of Atlantis, commented:

"I am delighted to report that MeyGen has now exported a remarkable 24.7GWh of predictable renewable energy. Not only is this world-renowned project helping the UK meet its Net Zero ambitions, but it is also providing valuable performance data which can be used to inform future projects, demonstrating MeyGen's importance as a global prototype.

"MeyGen holds a 398MW seabed lease and our data centre expansion project is world leading for a number of reasons. The cost of tidal power continues to reduce and this is being assisted by the sustained pressure the offshore wind market places on the supply chain domestically and abroad.

"The world's most valuable resource is no longer oil but data, and by combining tidal power with stranded onshore wind farms in close proximity to MeyGen, we can create a virtual power plant to provide sustainable power to a data centre in Scotland, creating important new fibre connections for Scotland and the UK in the process."

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 David Porter Luke Philippou
J.P. Morgan Cazenove (Joint Broker)                       Michael Wentworth Stanley	[phone]
FTI Consulting	[phone]
Ben Brewerton James Styles Josh Atkins

Notes to Editors

SIMEC Atlantis Energy 

SIMEC Atlantis Energy is the global developer, owner and operator of sustainable energy projects with a diverse portfolio of more than 1,000 megawatts in various stages of development. This includes a 77% stake in the world's largest tidal stream power project, MeyGen, and 100% ownership of the 220MW Uskmouth power station conversion project

www.simecatlantis.com

 

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