SIMEC Atlantis Energy surges after updating investors on operations

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SIMEC Atlantis Energy PLC (LON:SAE) surged on Wednesday after updating investors on its operations.

The renewables firm said that it remains fully committed to the Uskmouth Power Station Conversion Project after the Welsh Government decided to ‘call in’ the planning application, meaning it will no longer be determined by the local council.

READ: Simec Atlantis says Welsh government to handle Uskmouth planning application

In its tidal stream technology segment, SAE said it continues to work with UK Government to secure the necessary support mechanisms for the rollout, especially the next phase of the MeyGen project.

It said it expects MeyGen will unlock significant international opportunity for further projects and continue cutting costs of the energy produced, in line with more established forms of renewable generation.

The UK Government has indicated that it will announce the details of the support mechanisms this summer, with the auction round taking place towards the end of the year.

Currently, three of the turbines have been moved to the workshop in Nigg to complete onshore service works, with one estimated to return to service shortly while the other two will take longer.

Project development for SAE’s Raz Blanchard demonstration array, located between Alderney and France, is making “good progress”, the firm said, with additional offshore site surveys planned for the second quarter.

SAE said it welcomes the recently announced French legislation, which will help provide the necessary revenue support through a competitive power purchase contract for the project.

In the hydro segment, the energy producer is managing the construction of three interlinked projects, with a combined total installed capacity of 5.8-megawatt. 

The first project was commissioned in March 2021, with the second and third projects due to be commissioned in the next few months.

A separate fourth project commenced construction in January with commissioning and first-generation due in November 2021.

Regarding press speculation involving its largest shareholder, SIMEC UK Energy Holdings, and the board said it wishes to make clear that SAE is an independent company whose shares are admitted to trading on AIM.

The shareholder, which is a GFG Alliance member, now owns 43% of the company.

SAE noted it is not a member of the GFG Alliance and has no connection with any of the funding mechanisms used in that organisation. SAE is the sole owner of the Uskmouth Power station.

Shares surged 12% to 8.99p on Wednesday morning.

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