Q&A Tim Cornelius: From the EIC
Valley tidal barrage, we are looking at offshore wind projects, pumped storage and interconnectors. We’ll be investing our own capital in some projects, but also managing some money on behalf of others.
Gamechanger for renewables MeyGen’s tidal energy project in the Pentland Firth is Europe's largest tidal power project and the world's first commercially funded tidal array Test programmes at the Orkney-based European Marine Energy Centre played an important role in the evolution of the AR1500 and Andritz Hydro Hammerfest devices Eventually 269 turbines will be installed on the MeyGen project site, producing 400MW – enough to power 175,000 homes and support more than 100 jobs With the predictable and cyclical nature of tidal generation, there is a unique opportunity for other renewable energy projects to share the limited local grid access available when the MeyGen project is not generating at maximum output
What are your priorities when engaging the supply chain and how can companies get involved with your projects? We always try to maximise local content. But then there is price and terms of trade. Proactive engagement by the supply chain, where they have a vested interest in the project, is a strategy we’re actively pursuing. Of course, we still issue tenders, and anybody interested should contact the procurement team in our Edinburgh office. 2017 is an election year, do you see any risks to the sector at this point? No, I think the sector has already taken as many shocks as it could possibly take. We’ve had very good election results in France and in South Korea recently. Right now, we receive tremendous support from the Scottish government, and we don’t expect that to change. Are you concerned about Brexit? Will it impact on European funding for your project? It doesn’t affect any European funding for Phase 1B. However, losing access to the EIB, which is traditionally a low-cost source of finance, is going to be a big problem, not just for MeyGen, but for all similar projects in the UK in the medium-term. Can you explain the reasoning behind the formation of Atlantis Energy and its move into non-tidal stream renewables? It’s market pull – potential investors and developers were approaching us. By creating Atlantis Energy, we will diversify our generation and customer base. In addition to the Wyre
How are your plans progressing overseas, in particular regarding Hyundai and South Korea? The South Korean market is probably the most mature tidal power market in the world and therefore we want to be involved. Establishing a strategic relationship with Hyundai effectively allows us to enter the market. In return, we are well positioned to help Hyundai access markets elsewhere. In Indonesia, we are developing a project with SBS International in the Lombok Strait near Bali. France is also a serious area of focus for us, as are Canada and China. Is there anything these governments can do to accelerate development of the industry? Just stable policy and clear pricing. We haven’t enjoyed that unfortunately in the UK, but in other countries, long-term tariffs for large-scale projects give investors the confidence to make the long-term investment decisions necessary.
Atlantis Resources Atlantis Resources is a vertically integrated marine power project developer and tidal equipment manufacturer. Its turbines have generated more than 10,000MW hours of electricity in open water conditions, and it has the world’s largest portfolio of sea-bed leases for tidal flow projects. The company was founded by Michael Perry in 1996 and is headquartered in Singapore.
What are your longer-term aims? It’s our intention to deliver the first gigawatt of tidal stream. Cost is coming down all the time and you’ve got all the best sites in the world yet to be developed. Once a track record is established we should see a spurt of development. We’ll be focusing on larger projects, from 200MW up.
Atlantis project portfolio by construction date Project
Location
Capacity Date of (MW) construction
Date of CAPEX (£m) commission
MeyGen Phase 1A
UK
6
2015
2017
MeyGen Phase 1B
UK
5.1
2017
2018
41
MeyGen Phase 1C
UK
75
2019
2021
203
MeyGen Phase 2&3 FORCE Daishan Sound of Islay Indonesian Archipelago
51
UK
312
2022
2028
686
Canada
4.5
2018
2018
25
China
1
2018
2018
4
UK
10
2018
2019
70
Indonesia
12
2018
2020
95
India
250
2018
2026
690
Ness of Duncansby
UK
100
2020
2023
400
Brough Ness
UK
100
2020
2023
290 320
Mundra
Indonesian Archipelago
Indonesia
138
2020
2024
Mull of Galloway
UK
30
2021
2023
90
Strangford Narrows
UK
20
2021
2023
60
Portland Bill
UK
30
2021
2023
90
Strangford Lough
UK
1.2
2008
2008
17
Source: Atlantis Resources, Macquarie Research, February 2017
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