Atlantis, a global leader in the tidal power sector, has announced that it has entered into a partnership agreement with Equitix, a market leading developer, investor and fund manager of infrastructure assets with over £1.7 billion of funds under management.
Under the agreement, Atlantis and Equitix will work together to advance Atlantis’s portfolio of tidal power projects in Scotland, which represent a combined potential capacity of almost 650MW.
Equitix, through its managed funds, intends to acquire at least 25% of each Atlantis project vehicle at financial close of that project, and will work with Atlantis to prepare the projects for investment of the construction capital and achievement of financial close.
In the next two years alone Atlantis anticipates committed capital investment of almost £500 million for construction of the Company’s Scottish portfolio, from a combination of debt, equity and grants. This includes £51 million already committed for the current construction of the first phase of the MeyGen project, which is scheduled to produce first power this year.
Tim Cornelius, CEO of Atlantis, commented:
"This agreement with Equitix, a leading infrastructure investment specialist, is an important step for us in engaging a partner with both vital experience of large infrastructure projects and access to extensive capital, coupled with a desire to work with us to accelerate the further development of the UK’s tidal power industry. We are very excited to be working with Equitix on a range of fronts.”
Equitix was established to deliver and manage infrastructure projects from bidding and closing through to construction and service provision.
Nick Parker, COO and Founding Director of Equitix, commented:
"We are delighted to be entering into this partnership agreement with Atlantis, the clear market leader in the tidal energy industry which secures access to a pipeline of primary investment opportunities and has tremendous growth potential in the UK.”
The company's extensive portfolio includes a number of utility infrastructure and waste and renewables projects.
In March 2014 Equitix acquired an 80% share in Scottish Water’s Dalmuir waste water treatment plant which serves a population equivalent of around 600,000. Waste water from domestic households, commercial and industrial businesses is treated and either dried and converted into fuel pellets to power Longannet Power Station in Fife, or treated according to Scottish Environment Protection Agency (SEPA) highly regulated standards and returned to the River Clyde in Glasgow.
The project facilities have been fully operational since 2002 and has a 25 year concession which is set to expire in 2026.