Atlantis Resources has agreed to sell a minority stake in its Scottish tidal power subsidiary to Belgian offshore construction firm DEME.

The agreement will see DEME pay £2m for a 2% stake in Tidal Power Scotland Limited (TPSL), which implies a value of £100m on the business.

Both the firms will also work together on the construction of Atlantis’s offshore power project portfolio.

DEME will also have the right to contribute equity funding to the 10MW Sound of Islay project, which TPSL is purchasing from ScottishPower Renewables (UK) via an agreement signed in December last year.

Atlantis will continue to hold a 92% stake in TPSL after the completion of the transactions, while DEME and SPR will hold a combined 8% interest.

Atlantis CEO Tim Cornelius said: "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."

DEME group CEO Alain Bernard 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."

It is estimated that in the UK, there is a technical resource of 29 terawatt hours TWh of energy a year available in tidal currents, of which 11TWh is identified in the tidal flows in the Pentland Firth in the far north of Scotland.