Simec Atlantis Secures Contracts for Additional Clean Power at MeyGen Tidal Energy Plant

On Friday, Simec Atlantis Energy announced that it has successfully obtained four contracts, resulting in an additional 22 megawatts of clean power at the MeyGen tidal energy plant in Scotland. This news caused shares in the company to rise by 17%.

Currently, the shares are up 0.17 pence, reaching a total of 1.20 pence as of 0710 GMT.

Simec Atlantis Energy, known for their development of energy-generation projects, revealed that these four contracts ensure a payment of £198 ($247) per megawatt-hour for a duration of 15 years starting from March 31, 2028, which is the projected commissioning date.

With the inclusion of this extra 22MW power, the MeyGen site will now be able to deliver a total power capacity of 50MW through its tidal stream array. This is in addition to the existing operation of 6MW at MeyGen.

The company acknowledged the significance of this milestone, stating, "This is another important step for the project and the industry, but it is vital this progress is maintained."

It should be noted that these agreements function as contracts for difference. These agreements require the buyer to pay the difference between the asset's current value and its value at the time of contract.