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LONDON (Alliance News) - Atlantis Resources Ltd Friday said the European Commission has approved the company's plan to transfer EUR17.0 million of funding from a project in Scotland to the company's MeyGen project.

Atlantis acquired the Marine Current Turbines group in an all-share deal back in June from German conglomerate Siemens AG. Through that acquisition, Atlantis acquired the Kyle Rhea project, a tidal stream array project between the Isle of Skye and the west coast of Scotland.

That project had EUR17.0 million of funding provided by the European Commission earmarked for development, however Atlantis is solely focused on building MeyGen, which will be the world's largest tidal stream energy project and built in Scotland.

Atlantis had to get approval from the European Commission's Climate Change Committee and stressed that transferring the funding was beneficial to the country as it is being used to develop a more advanced tidal stream project.

Following approval, the first EUR10.0 million of the funding will be transferred and made available to the company on April 1, 2016. The company did not state when the remaining EUR7.0 million would be moved.

"The EC's continued support for tidal power via the MeyGen and the Sound of Islay projects underlines Scotland's position as the world's leading tidal power region and reflects the strong support the industry has received from the Scottish government," said Chief Executive Tim Cornelius.

The funding is for MeyGen Phase 1B, otherwise known as Project Stroma, and will accelerate the development of the MeyGen project, with this second phase targeted to reach financial close and commence construction during 2016, it said.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

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