Simec inks joint venture agreement with Normandy

(Sharecast News) - Simec has formed a joint-venture with Development Agency for Normandy aimed at developing a large-scale project in the region.Simec and AD Normandy, the regional agency for economic development in Normandy, will establish an operational presence in Raz Blanchard under the name Normandie Hydrolienne.The duo intends to harness up to 2GW of power from the Alderney Race, the eight-mile strait that runs between Alderney and La Hague, as well as more than 1GW of resources from adjacent concessions under the control of the States of Alderney.Simec told investors that Normandie Hydrolienne has the potential to provide more power at a lower cost than the Hinkley Point C Nuclear Power Station in Somerset.Chief executive Tim Cornelius, said: "Raz Blanchard is sitting on a huge amount of renewable, predictable energy and we wish to bring our project development, financing and power production expertise to help the region of Normandie create jobs and attract a substantial amount of investment into the region."Elsewhere, Simec announced its plans to enhance returns from its MeyGen project and deliver a 40% increase in yield through the installation of at least two new Atlantis turbines.When installed, these new Atlantis turbines, which are capable of generating up to 2MW using more powerful generators and larger rotor diameters, will use a new subsea connection hub and share a single export cable.Simec said the proposed works, known as Project Stroma, will benefit from a €16.8m revenue support package from the European Commission as part of its NER300 programme.As of 1115 BST, Simec shares had shot up 14.04% to 13.40p.