MeyGen Update

RNS Number : 5544P

SIMEC Atlantis Energy Limited

11 February 2019

 

11 February 2019

SIMEC ATLANTIS ENERGY LIMITED

("Atlantis", the "Company" or the "Group")

MeyGen Update

SIMEC Atlantis Energy Limited ("Atlantis"), a diversified sustainable energy generation company, is pleased to announce that it has today awarded a contract to subsea engineering specialists ETA Limited for the manufacture and delivery of the world's most advanced subsea tidal turbine connection system which will underpin the MeyGen extension activities known as Project Stroma.

The subsea hub will allow multiple turbines to be connected to a single power export cable, which will significantly reduce the costs associated with grid connection. The length of power export cable as well as the amount of onshore conversion equipment required for grid connection will be significantly reduced, as will the amount of horizontal directional drilling required and the amount of vessel time required for cable installation.

Project Stroma will connect two additional Atlantis AR2000 turbines via the new subsea hub to a single power export cable which will then be connected via the MeyGen substation to the National Grid.

Management are currently exploring a number of funding options for the capital expenditure associated with Project Stroma, including a potential issue of the Company's first listed bond.  

Drew Blaxland, Director of Turbine and Engineering Services Division, commented:

"The Atlantis subsea hub has been designed to deliver immediate, material reductions in the overall cost of tidal power generation. Leveraging technologies developed for the oil & gas and offshore wind industries, we have adapted tested products to our new turbine design to deliver an approximate 50% reduction in the CAPEX costs on a per turbine basis associated with turbine grid connection compared to MeyGen Phase 1.

Further, this subsea hub has direct application to the growing floating offshore wind market globally. An adaption of our hub will be able to connect multiple floating offshore wind turbines in deep water, helping this industry on its cost down trajectory."

Tim Cornelius, CEO of SIMEC Atlantis Energy, commented:

"The iconic MeyGen project is once again at the forefront of the development of the marine energy industry in Europe. Building on the success of our previous project specific bond issuances, we are currently in discussion with several regulated exchanges about the issuance of a debt instrument to fund Project Stroma which will in turn allow us to progress our plans to secure CfD allocations for future phases of the MeyGen project."

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
J.P. Morgan Cazenove (Joint Broker)              James Deal Michael Wentworth Stanley	[phone]
FTI Consulting	[phone]
Ben Brewerton Alex Beagley Molly Stewart

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 the conversion of the 220MW Uskmouth Power Station.

We intend this to be the first of a number of acquisitions aiming to transform SIMEC Atlantis into a diversified energy Company of scale, owning development and generating assets across the sustainable energy spectrum in Europe, Asia and Australia, complementing our existing UK pipeline.

https://simecatlantis.com/ 

ETA

ETA have a global reputation as experts in subsea cable products and services. ETA's specialist equipment, developed and designed in-house for tailored results, is the product of a highly skilled team and sits behind the success of many major subsea cable projects worldwide.

http://www.eta-ltd.com/ 

 

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