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SIMEC Atlantis Energy Statement re Open Hydro Liquidation

27 July 2018

Statement re Open Hydro Liquidation

 

SIMEC Atlantis Energy was saddened to hear of the decision by Naval Energies to place Open Hydro into liquidation yesterday and our thoughts are with the employees of the company at this time.  We stand ready to work with governments, regulators and developers around the world to continue to deliver commercial scale tidal power projects as the Levelized Cost of Energy (“LCOE”) continues to fall for traditional three bladed pitching and yawing horizontal axis tidal turbine arrays.

Earlier this year, we submitted a proposal for a 1GW tidal stream array in Raz Blanchard, Normandy to the French Government which would deliver power at less than the current price of offshore wind in France by 2025 and earlier this week, we welcomed the announcement by Claire Perry, UK Minister for Energy and Clean Growth, confirming that the next Contract for Difference auction for less established technologies will open by May next year and that subsequent auctions will be held every two years thereafter.  That bold announcement provides welcome confirmation of the UK government’s long-term commitment to offshore renewables.  We look forward to bidding future phases of the MeyGen project and our wider portfolio in the these auctions, as we continue to drive down the cost of tidal energy generation, building and securing the future of this key, fully predictable, low-carbon industry in the UK.

 

Tim Cornelius, CEO of SIMEC Atlantis Energy, said:

 

“Our tidal stream division has never been more active with contracts in Asia and Europe for the delivery of services and equipment and we have several material investment decisions to make this year on the next series of commercial scale arrays in the UK.  If we are able to make progress with the French Government on the development of large scale arrays in Normandy and Brittany, we would be delighted to discuss the future of  the Cherbourg plant as we are currently running out of capacity at our facility at Nigg Energy Park in Scotland.

 

“Furthermore, given the EC approval overnight for the Normandie Hydro plant, we would be delighted to invest alongside existing shareholders and supply equipment to this project, if required.  SIMEC Atlantis can deliver pilot farms in Normandie within existing support mechanisms which can be in operation in 2019/20 and commercial scale arrays for less than €70/MWh by 2025 making tidal power very competitive in French territorial waters using traditional horizontal axis turbines.”

 

Enquiries:

SIMEC Atlantis Energy via FTI Consulting
Tim Cornelius, Chief Executive Officer
Andrew Dagley, Chief Financial Officer
FTI Consulting +44 (0)20 3727 1000
Ben Brewerton

Caroline Cutler

Molly Stewart

simecatlantisenergy@fticonsulting.com