REG - SIMEC AtlantisEnergy - Company Update

SIMEC Atlantis EnergyAnnouncement

16/12/2021 07:00

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RNS Number : 8063V  SIMEC Atlantis Energy Limited  16 December 2021

 

 

RNS

16 December

SIMEC ATLANTIS ENERGY LIMITED

("SAE", "Atlantis", the "Company" and, together with its subsidiaries, the
"Group")

Company Update

Uskmouth update

 

SAE is engaging with Welsh Government on the application to vary our existing
environmental permit for the Uskmouth power station. Having gone through the
process with Natural Resource Wales (NRW) and demonstrated that the conversion
will be fully compliant, SAE looks forward to providing all the information to
Welsh Government to allow it to make its decision. SAE is working with Welsh
Government to understand the timetable in which a decision can be made.

 

SAE is exploring opportunities to best extract value from the Uskmouth site
which could be complimentary to the conversion or stand alone. The options
being considered are primarily forms of renewable energy generation which make
use of some of the existing infrastructure, available land, and grid
connections. The options being considered are in-line with UK and Welsh
Government policies.

 

International opportunity

 

Following agreement at COP26 to the phasing down of coal usage, the
opportunity for the conversion of coal fired power stations to fuel pellets is
significant in accelerating and supporting this global transition. SAE is
working with its partners to identify further opportunities internationally
where this exciting solution can be quickly deployed.

 

Tidal update

 

In November 2021, SAE entered into a collaboration agreement with fellow world
leading tidal energy developer, Nova Innovation. The agreement will see the
companies work together to deliver tidal turbines at the MeyGen site and
beyond.

 

SAE and Nova are the two leading players in tidal stream energy and operate
the world's first offshore tidal array (installed by Nova in Shetland in 2016)
and the world's largest tidal array (the 6MW MeyGen phase 1 project developed
by Atlantis in the Pentland Firth, which includes the world's most powerful
tidal stream turbines). SAE and Nova have delivered over half of the tidal
stream devices operational worldwide and are developing sites in the UK,
Canada, Japan, and France. Both companies deploy subsea turbines which
generate predictable, renewable power with no visual impact.

 

SAE and Nova welcomed the announcement by the UK Government to put a dedicated
budget in place for tidal stream energy in the upcoming Contracts for
Difference Allocation Round 4. This signal of support is a welcome boost to
the industry.

 

MeyGen Operation

 

SAE continues to work on the re-deployment of the three turbines, out the
water for maintenance, at phase 1 of MeyGen. The re-deployment of one of the
turbines was set back following a crane failure on the vessel being used for
its re-deployment. SAE is working with the vessel operator to determine the
next appropriate time for deployment. SAE is working with stakeholders to
ensure the remaining two turbines can return to operation as quickly as
possible. The operational fourth turbine continues to exceed expectations and
demonstrates the viability of tidal turbine technology.

 

Financial update

 

The Company has put in place actions that will materially reduce headcount and
monthly operating costs. The impact of these actions will be seen in our
financial year commencing 1 January 2022. Cash proceeds from the disposal of
GHR, announced on 13 December 2021, combined with the reductions in operating
costs, provide the business with the working capital headroom to deliver on
the opportunities for value from the Uskmouth site noted above and to deliver
on further project opportunities. Both activities are important for further
necessary cash generation during 2022.

 

The Company noted in the announcement accompanying the Group's half year
results on 28 September 2021 that the business remains dependent on external
financing to develop it key projects. In combination with the opportunity to
deliver value from the Group's assets, the Board is considering a range of
further funding options.

 

For more information please contact:

 

 SAE                                         +44 (0) 7739 832 446
 Sean Parsons, Director of External Affairs
 Investec Bank PLC - NOMAD and Joint Broker  +44 (0) 20 7597 5970
 Jeremy Ellis

 Ben Griffiths

 Shalin Bhamra

 Arden Partners PLC - Joint Broker           +44 (0) 20 7614 5900

 Ruari McGirr

 Richard Johnson

 Simon Johnson

 

Notes to Editors

 

SAE

SAE is a global developer, owner and operator of sustainable energy projects
with a diverse portfolio in various stages of development. This includes a 77
per cent. stake in the world's largest tidal stream power project, MeyGen, 100
per cent. of the 220MW Uskmouth Power Station conversion project and 100 per
cent. of Green Highland Renewables, a leading developer of mini-hydro
projects.

https://www.simecatlantis.com/ (https://www.simecatlantis.com/)

 

More on the MeyGen Project: https://simecatlantis.com/projects/meygen/
(https://simecatlantis.com/projects/meygen/)

More on the Uskmouth Project:
https://simecatlantis.com/project-development-operation/simec-uskmouth-power/
(https://simecatlantis.com/project-development-operation/simec-uskmouth-power/)

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