Belgian offshore construction specialist DEME Group has agreed to buy a 2 per cent stake in Tidal Power Scotland, the Scottish tidal development company owned by Atlantis Resources, for £2m cash consideration.
As part of the transaction, Atlantis and the DEME group intend to develop a partnership for offshore construction works in Scotland. The DEME group has a fleet of over 90 major construction vessels and the group’s turnover in 2015 was €2.35 billion. The deal also gives DEME the right to contribute equity funding to the 10MW Sound of Islay project, which Tidal Power Scotland acquired in December 2015 from ScottishPower renewables.
Tim Cornelius, chief executive of Atlantis, commented: ”We are excited to welcome DEME as a strategic investor into the TPSL portfolio. As a respected global leader in offshore renewable energy installation, DEME brings a wealth of expertise and we are particularly excited to work closely with them to help deliver our Scottish project pipeline.”
Alain Bernard, chief executive of DEME group, said: “This transaction is a vital move for the DEME group in fulfilling its ambitions to be at the forefront of the growing tidal energy industry. Moreover, it consolidates the company’s presence in the UK as DEME’s involvement in the UK offshore business dates back to the early years of offshore wind. We look forward to working alongside Atlantis and SPR as shareholders in TPSL to develop and construct this unrivalled portfolio of projects.”
Atlantis will retain a 92 per cent stake in Tidal Power Scotland. Scottish Power Renewables acquired a 6 per cent stake following a deal which gave Tidal Power Scotland the Sound of Islay project at the 100MW Ness of Duncansby project.
The sale is subject to satisfaction of certain conditions, including third party consent, which are scheduled to be achieved during the coming weeks.
From the magazine (subscribers only): Industry efforts to generate electricity from the UK’s tides will enter a critical new phase in 2016 with installation of the world’s first mini array of utility-scale turbines off the Scottish coast