Edinburgh-based tidal energy developer Atlantis Resources has agreed to sell its stake in the Canadian joint venture to its partner DP Energy.
Atlantis and DP Energy have entered into a conditional sale and purchase agreement for the sale of Atlantis’ 50% interest in Atlantis Operations (Canada) Limited (AOCL).
The cash transaction is expected to result in DP Energy taking a more integrated approach to the development of the AOCL berth named ‘Charlie’ alongside its other managed berth ‘Echo’ at the Fundy Ocean Research Center for Energy (FORCE).
The venture will be renamed after the transaction is completed, which depends on the realization of certain conditions, including the receipt of the required approval from the Nova Scotia Minister of Energy.
The sale will allow Atlantis’ project development team to focus on other opportunities in the UK, Europe and Asia, while enabling the DP Energy team to concentrate its efforts on the development of the tidal in-stream power generation sector in Nova Scotia.
Post completion, Atlantis’ Turbine and Engineering Services Division will continue to participate in all future tenders in Canada as an equipment and services supplier, Atlantis said.
Tim Cornelius, Atlantis CEO, said: “Following completion of this transaction, Atlantis will continue to actively offer and market its world leading turbine systems, subsea connection equipment, offshore construction and project management services to all developers in Nova Scotia at FORCE and as the larger arrays are built out in the Bay of Fundy.
“Canada remains an important growth market for the group.”
Simon De Pietro, Director of DP Energy, added: “DP Energy is fully committed and very pleased to be working with the Nova Scotia Government to promote the development of tidal energy as a major source of renewable electricity production in Canada and we remain eager to take on the exciting challenges provided by the tidal resource in the Bay of Fundy.
“The transaction adds further depth to the rapidly expanding portfolio of renewable energy projects of the DP Energy group of companies worldwide.”
To remind, AOCL was formed in 2015 when Atlantis sold its 50% interest in the business to DP Energy.
Prior to that, AOCL had been awarded a feed-in tariff for up to 4.5MW of tidal generation in the Bay of Fundy in Nova Scotia at a rate of C$530 per megawatt hour in December 2014.