Simec Atlantis makes significant advancement in MeyGen project

Simec Atlantis Energy (SAE) announced a significant advancement in its MeyGen tidal power project in Scotland on Friday.

The AIM-traded firm said it had recently obtained four contracts for difference (CfD) in the latest allocation round, guaranteeing a rate of £198 per MWh for a 15-year period, starting 31 March 2028.

It said the move would allow it to augment its power output by around 22MW at the MeyGen facility.

The recent success with the CfD contracts followed SAE's ongoing efforts to deliver on the 28MW that it secured during the AR4 round in July last year.

It said the achievements in both rounds were expected to amplify the project's economies of scale, and would also provide a solution to the significant cost escalations faced by entities that secured contracts in the prior year.

In a strategic decision to expedite the projects, SAE said it was planning to run them concurrently, adding that once fully operational, the MeyGen site would boast a 50MW tidal stream array.

That would be in addition to the existing 6MW that was already functional.

In real-world terms, that meant the tidal energy generated from the site could power more than 65,000 homes annually.

In its bid to deploy the most advanced technology for the project, SAE explained that it was engaged in high-level talks with a global consortium consisting of premier global manufacturing and engineering firms, set to introduce 3MW turbines to the site.

Notably, they would be the most powerful tidal turbines ever installed, marking a breakthrough in tidal energy technology.

Furthermore, SAE said it was exploring the possibility of setting up a turbine manufacturing facility in proximity to the MeyGen site.

That move could provide a significant boost to the local economy, and further strengthen the nation's position in the renewable energy sector.

“This is another important step for the project and the industry, but it is vital this progress is maintained,” the board said in its statement.

“SAE looks forward to working with all stakeholders to ensure that the next auction round delivers greater scale and unlocks the full potential of both the MeyGen site and the wider industry.”

At 1340 BST, shares in Simec Atlantis Energy were up 0.06% at 1.09p.

Reporting by Josh White for Sharecast.com.