Scotland Starting Largest Tidal Energy Project
Published on by Water Network Research, Official research team of The Water Network in Government
Atlantis Resources'Construction of the World's Largest Tidal Stream Project Begins Offshore Scotland,Highlighting the Country asGlobal Leader in Marine Technology
MeyGen, the world's largest tidal stream development, has announced that it has agreed terms for a funding package to finance the construction of the first phase of its groundbreaking 398MW tidal array project in the Pentland Firth, Scotland. When fully completed, the MeyGen project will have the potential to provide clean, sustainable, predictable power for 175,000 homes in Scotland, support more than 100 jobs, reduce carbon emissions, and deliver significant, long-term supply chain benefits for UK economy.
The MeyGen project, owned by AIM-listed tidal power company Atlantis Resources ("Atlantis"), has successfully led a funding syndicate to raise approximately £50 million which will be used to finance the initial stage of the wider MeyGen project. This initial stage (Phase 1A) will include the installation of 4 X 1.5 megawatt turbines offshore as well as the construction of all onshore infrastructure to support the project, including the onshore power conversion centre and grid connection.
When completed, the project will include up to 269 turbines submerged on the seabed, generating enough energy for 175,000 homes in Scotland. The total first phase (Phase 1) of the project alone (61 turbines / 86MW) is expected to provide enough electricity for 42,000 homes in Scotland. Construction is expected to begin later this year, with the first electricity anticipated to be delivered to the grid by 2016.
Approximately 50 direct jobs will be created during Phase 1 of the project, with a further 70 indirect roles created throughout the supply chain.
As the first large-scale tidal project of its type in the world to successfully reach a funding agreement, the MeyGen project will be a catalyst for the global tidal power market, signaling the transition of the industry from demonstration projects to commercial arrays.
The funding syndicate includes: Atlantis; the Department of Energy & Climate Change; The Crown Estate; Scottish Enterprise via the Renewable Energy Investment Fund (REIF); and Highlands and Islands Enterprise.
HSBC will be acting as the security trustee and account bank for the project, having also facilitated various guarantees to key stake holders (National Grid Plc and Scottish Hydro Electric Power Distribution Plc) to support the project.
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