SIMEC Atlantis Energy Limited (Atlantis) has today announced the acquisition of the Green Highland Renewables project development, asset management, operation and maintenance business (GHR) from SIMEC Energy, following a previous announcement on 28 June 2019. The company also announced that it has signed a contract to supply tidal generation equipment and offshore construction services to Kyuden Mirai Energy (KME) for a demonstration project in Japan.
GHR provides a complete range of management, operation and maintenance solutions and services to hydro generation asset owners throughout the UK. It has consented more than 65 hydro schemes, built more than 45 hydro schemes and provides operation and maintenance services for more than 45 hydro schemes in the UK.
Atlantis will acquire 100% of GHR for a nominal sum of £1.00 from SIMEC Energy, with the GHR business expected to deliver immediate, positive cash flow to Atlantis via long term asset management, operations and maintenance contracts on hydro assets throughout the UK
The GHR senior management team will be integrated into the Atlantis senior management team with immediate effect, with GHR to retain its independent branding. In addition to growing its O&M and asset management services agreement through the UK, the GHR project development team will continue to develop green-field and brown-field hydro opportunities domestically and abroad for Atlantis, said the company in a statement.
Under the deal signed with KME in Japan, the Atlantis Turbine and Engineering Services Division (“ATES”) will supply and install an AR-Series turbine and associated balance of plant. The system will be deployed at site in the Nagasaki Prefecture initially in a demonstration capacity, operating at a reduced generation output of around 500kW, as a data collection and validation device for the client and Japanese regulatory bodies. Atlantis expects to deliver and install the tidal generator by late Q3 2020, with completion of the demonstration in Q1 the following year. The possibility to upgrade the project to full output post successful completion remains, subject to approval.
In an industry first, Atlantis will be exporting Scottish tidal generation equipment to be used for the duration of the project under a rental agreement.
Atlantis will be responsible for the supply installation and operation of the turbine system, inclusive of foundation and cable supply, and has brought on Orkney based offshore marine energy construction specialist Green Marine to bolster offshore construction planning and installation support for the cable and foundation.
The project has been sanctioned by the Japanese regulator and authorities. Llocated in the straits of Naru Island within the southern Japanese Goto island chain, the project has a total budget of 1,800m¥.