The consolidated Group cash position at 31 December 2019 was £4.5 million (2018: £9.3 million), including £1.8 million held in
MeyGen PLC (2018: £2.4 million).
The MeyGen project generated revenues of £4.1 million from the sales of power and Renewables Obligations Certificates.
GHR’s hydro division O&M and project management contributed £0.5m revenue from the date of acquisition.
Overall Group losses for the year were £35.4 million (2018: £24.0 million). The increase in this loss is primarily attributable to a £16.1 million non-cash disposal of seabed options for five development sites. Additionally, the increased loss in the year reflects the full year results of significant changes to the Group during 2018, being the acquisition of SIMEC Uskmouth Power Ltd (“SUP”) in June 2018 and the results of MeyGen becoming operational in April 2018. Included in the 2019 results is a £2.9 million non-cash gain on bargain purchase as a result of fair value calculation on the acquisition of Green Highland Renewables.
Group total equity at 31 December 2019 of £94.0 million (2018: £119.6 million).
In March 2019, Atlantis raised over £5 million, before expenses, through an equity fundraising to secure funding for the acquisition of GHR. As a result of the revised transaction the net proceeds were used for the Company’s general corporate purposes.
2019 saw Phase 1 of the Group’s flagship MeyGen tidal energy project continue to break records, and has now delivered over 31GWh of clean and predictable electricity to the grid.
In October 2019, Atlantis acquired the entire issued share capital of SIMEC GHR Ltd (“GHR”) from SIMEC GHR Acquisitions Topco Limited a subsidiary of SIMEC Energy (“SIMEC”), a member of the GFG Alliance. The acquisition was undertaken to further diversify the Atlantis energy platform and combine the project management and delivery expertise of the two companies whilst bringing positive revenue streams to the Group. Consideration for the purchase was £1.
In July 2019, the Group successfully decommissioned the SeaGen tidal support structure in Strangford Narrows, Northern Ireland, marking the completion of the 1.2MW project which set a benchmark for the early days of the tidal industry.
In July 2019 Atlantis entered into a joint venture agreement with regional investment fund Normandie Participations and local engineering and manufacturing business Efinor. The joint venture, Normandie Hydroliennes, has been established with the objective of developing tidal projects in the fast flowing waters off the coast of Normandy.
Atlantis announced in October 2019 that it is had awarded the contract for combustion system design or SUP to Mitsubishi Hitachi Power Systems Europe GmbH (“MHPS Europe”). The contract included completion of industrial scale milling tests on the fuel pellets; completion of industrial scale combustion tests on the fuel; and completion of Uskmouth furnace burner system designs.
Atlantis announced in October 2019 that it is had signed a contract to supply tidal generation equipment and offshore construction services to Japan’s Kyuden Mirai Energy (“KME”) for a demonstration project in Japan. The project, located in the straits of Naru Island within the southern Japanese Goto island chain, has a total budget of 1,800m¥.
POST YEAR END HIGHLIGHTS
Tidal Stream Highlights
In February 2020 Atlantis announced it had opened an office in Nagasaki Japan as a base for the Groups newest entity Atlantis Operations Japan (“AOJ”). The Nagasaki office will be the base for managing the construction works for the Group’s utility client, KME.
In March 2020, the MeyGen project was awarded £1.5 million in grant funding from the Scottish Government’s Saltire Tidal Energy Challenge Fund to develop a subsea tidal turbine connection hub for the next phase of development of the MeyGen tidal power array.
In June 2020 Atlantis announced that the local prefecture had approved the transfer of the rights to a tidal project site in the Raz Blanchard from original developer ENGIE to Normandie Hydroliennes.
SIMEC Uskmouth Power
In February 2020, Atlantis raised over £3.8 million, before expenses, through the Abundance ethical investment platform to further the successful delivery of the SUP conversion.
In March 2020, Atlantis announced the successful production of 100 tonnes of fuel pellets for large scale combustion testing and successful completion of large scale milling tests on the 100% waste derived fuel pellets to be used at the Uskmouth power station post conversion.
In June 2020, Atlantis announced the successful completion of the combustion testing as a significant milestone for the project. The test conclusively proves that a pulverised fuel burner based on MHPS’s DS® Ultra Low NOx burner can be used to stably combust the waste derived fuel unsupported (i.e. without any oil or gas support firing). The burner was able to operate continuously at 25MW thermal power using the fuel and is comparable in rating to the burners required for the Uskmouth conversion project.
On 6 August 2020, the Company announced a placing which has raised gross proceeds of £6.5m through the issue of 54,166,666 new ordinary shares at 12 pence per share and a further £1 million through the issue of 8,333,333 new ordinary shares at 12 pence per share. In aggregate, the fundraising has raised gross proceeds of £7.5 million and will result in the issue of 62,499,999 new capital and an intended investment in a new fuel production joint venture.