Simec Atlantis making 'good progress' with next phase of MeyGen

8th Nov 2022 12:45

(Sharecast News) - Tidal energy specialist Simec Atlantis (SAE) said in an update on Tuesday that it was making "good progress" in the delivery of the first commercial-scale tidal array in the world at the MeyGen site in Scotland.

The AIM-traded firm said the next phase at the site would see it deliver an additional 28 MW of "predictable" renewable power.

It announced that, to take overall responsibility for the delivery of the next phase, it had appointed Mark Evans as project development director.

"Mark brings over 20 years of renewable energy development and delivery experience, including the development of over 1 GW of wind projects," the SAE board said in its statement.

"Mark brings to the team a proven track record of successfully delivering major renewable projects as well as a passion for tidal energy."

SAE also announced the appointment of corporate finance advisors Lumin Capital as financial advisor for the next MeyGen phase, to assist in securing the necessary funding for the project.

"Lumin Capital brings extensive experience of working with project developers on projects around the world to enhance shareholder value and secure funding.

"Lumin will be a key part of the team in ensuring the success of MeyGen phase two."

The company said it had also been active at the site, completing resource surveys to provide "vital data" to better understand the tidal resource there, to allow for the detailed design of the project.

In October, SAE deployed an acoustic Doppler current profiler (ADCP), a tidal flow measurement device, at the MeyGen site.

"The ADCP will be deployed for a month to record a full lunar cycle's worth of data.

"SAE has combined the fixed deployed ADCP with vessel-mounted ADCP surveys to better understand the variable flows across the site."

The firm said it was working with Frazer-Nash Consultancy and the University of Edinburgh on the analysis, and the tidal array design optimisation work that would subsequently take place using the data.

"SAE remains on track to achieve financial close of the MeyGen phase two project in 2024, with operation starting in 2027."

At 1155 GMT, shares in Simec Atlantis Energy were down 1.44% at 1.23p.

Reporting by Josh White for Sharecast.com.