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(Alliance News) - SIMEC Atlantis Energy Ltd said Wednesday that MeyGen has been awarded a GBP1.5 million grant from the Scottish Government's Saltire Tidal Energy Challenge Fund for its tidal power project.
Shares in the renewable energy firm were up 7.3% at 7.51 pence on Wednesday in London.
The grant is for the development of a subsea tidal turbine connection hub for the next phase of development of the MeyGen tidal power array, a tidal stream power project offshore Scotland.
The funding will go towards the design and installation of the subsea hub and associated subsea connection infrastructure, which will be a key enabler for future array phases by delivering cost reductions in power design by connected several turbines to a single export cable.
As a result of the grant, SIMEC Atlantis's Turbine and Engineering Services division will be awarded a GBP2.4 million engineering, procurement and construction contract by MeyGen for the delivery and installation of the subsea hub.
The hub is expected to be installed later in 2020.
"We are very grateful and appreciative of the Scottish Government's continued support for tidal stream energy by awarding this grant to help fund MeyGen's ongoing expansion. The first of its kind globally, the new subsea hub represents a significant milestone in the cost reduction path that tidal power is currently on and also has exciting application in the floating offshore wind market," said SIMEC Atlantis Chief Executive Officer Tim Cornelius.
"The subsea hub we have designed and developed is a key part of our overall cost reduction strategy for tidal power generation. This hub will also have direct application for other forms of marine energy such as floating offshore wind and wave energy," Cornelius added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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