SIMEC Atlantis sells hydro business to step up focus on tidal

SIMEC Atlantis Energy has sold its hydro power subsidiary Green Highlands Renewables (GHR) for a total of €3.5 million in a move to simplify its business structure and increase focus on tidal and power station conversion businesses.

Under the terms of the transaction, VH Auslandsbeteiligungen (VHA) will acquire a 90% interest in GHR, with the company’s general manager Alex Reading acquiring the remaining 10% interest.

The sale of GHR will simplify the structure of SIMEC Atlantis, and enable management to focus on developing the tidal and power station conversion businesses, and bring in necessary additional funding to support continuing group operations and the development of key projects, according to the company.

Following COP26, there is refreshed focus on the delivery of renewable and sustainable power generation.

This was reflected by the commitment to the phasing down of coal and the UK Government’s announcement to put in place a ring fence in the upcoming Contracts for Difference Allocation Round 4 (CfD4) for the tidal stream industry.

These announcements demonstrate how critical SIMEC Atlantis’ projects are to the UK and the rest of the world, the company said.

To remind, the UK government made a decision to invest £20 million per year in tidal stream electricity through its renewable energy auction scheme in late November 2021.

Applauding the news, Graham Reid, CEO of SIMEC Atlantis, the company behind the MeyGen tidal energy project, said: “A huge thank you to the supporters and champions that have made the case for our technology and the role it will play in creating jobs, investment and delivering the only predictable renewable energy source with no visual impact”.

Beforehand, SIMEC Atlantis teamed up with another Scottish tidal energy company Nova Innovation to deliver more UK-built tidal turbines in the water, putting the initial focus on the MeyGen tidal energy project.