Atlantis is to join forces with GFG Alliance to create a new renewable energy platform.
The Scottish tidal energy firm announced today (14 December) it has signed a conditional share purchase agreement to buy the Uskmouth power station in South Wales, which is owned by SIMEC, which is the energy arm of the GFG Alliance group.
In return, SIMEC will receive a 49.9 per cent stake in Atlantis, which will be renamed SIMEC Atlantis Energy.
The deal is expected to be completed during the first quarter of next year.
The SIMEC group already owns an interest in Tidal Lagoon, which is developing tidal energy projects in Wales and North West England.
According to a statement from Atlantis, the agreement is set to be the “first of a number of acquisitions” from GFG Alliance, which will transform the power firm into a “diversified energy company” that owns assets “across the sustainable energy spectrum”.
The chief executive of Atlantis, Tim Cornelius, said the “establishment of a formal and long-term relationship” with SIMEC and GFG Alliance will be “transformational for our company”.
“SIMEC and GFG Alliance are highly respected within the industry and will significantly enhance our visibility on the international stage,” added Cornelius.
“We see additional material value for Atlantis shareholders in what we believe is the high-quality renewable power asset pipeline to which Atlantis will potentially have access following completion of the transaction.”
The chief investment officer at SIMEC, Jay Hambro added: “We are particularly excited about this opportunity to expand our investment in the tidal power sector, which we see as a game-changing technology that holds huge possibilities for cheap, clean power in the future.
“This is also a major step towards our ambition to create 1GW of renewable energy capacity in the UK within the next three years.”
Last month, Atlantis signed an agreement with the Duchy of Lancaster to develop a tidal barrage in the Wyre estuary.