AtlantisResources has agreed to acquire two tidal projects from ScottishPower Renewables (SPR).
The projects being acquired include a 100MW development at the Ness of Duncansby at Scotland’s north eastern tip and a 10MW project at the Sound of Islay in western Scotland.
Atlantis’s Scottish project development vehicle, Tidal Power Scotland Limited (TPSL), will buy the projects under an all-share agreement. In exchange, SPR will gain a 6% shareholding in TPSL.
The deal will help Atlantis achieve its goal of 640MW of installed tidal power capacity by 2022 in the UK.
The two projects will sit alongside the 398MW MeyGen project in Pentland Firth, which is 85% owned by TPSL.
ScottishPower Renewables CEO Keith Anderson said: "The MeyGen project has moved the tidal power sector forward in Scotland and Atlantis is now the world’s leading developer. This agreement will drive momentum in the sector."
The Sound of Islay project has received €20.7m in funding from the European Commission’s NER300 fund.
This project has alreadu secured consents, grid connection and grants..Financial close is expected to be reached in 2016.
Earlier this year, Atlantis acquired Marine Current Turbines from Siemens in an all share deal.
The company also reached lease agreements for two tidal projects at the Mull of Galloway and Brough Ness which will have a combined capacity of 130MW.
Atlantis CEO Tim Cornelius said: "The UK is now synonymous with tidal power in the same way tech is with Silicon Valley. Thanks to the dedicated support provided by the Department for Energy and Climate Change and the Scottish government, the UK tidal sector is leading the world.
"In a transformational 12 months, we have increased our UK projects portfolio by almost 80% in terms of potential capacity, through the acquisition of Marine Current Turbines from Siemens, and this transaction with ScottishPower Renewables."
Image: Atlantis is aimed at having 640MW of installed tidal power capacity by 2022 in the UK. Photo: courtesy of porbital / FreeDigitalPhotos.net.