Edinburgh-based tidal power company Atlantis has agreed to sell a minority stake in its Tidal Power Scotland Ltd (TPSL) company to Belgian firm DEME.
DEME agreed to pay Atlantis £2 million for a 2% stake in TPSL and a right to contribute equity funding to the ongoing Sound of Islay project.
As part of the transaction, Atlantis and DEME intend to develop a partnership for offshore construction works.
The deal with DEME follows TPSL’s agreement with ScottishPower Renewables (UK) in December 2015 to acquire the 10 megawatt Sound of Islay project and 100 megawatt Ness of Duncansby project in exchange for a 6% shareholding in TPSL.
Following the completion of the DEME and ScottishPower Renewables transactions, Atlantis will retain a 92% stake in TPSL.
DEME has a fleet of more than 90 construction vessels and the group’s turnover in 2015 was €2.35 billion.
“We are excited to welcome DEME as a strategic investor into the TPSL portfolio,” said Tim Cornelius, CEO of Atlantis.
“As a respected global leader in offshore renewable energy installation, DEME brings a wealth of expertise and we are particularly excited to work closely with them to help deliver our Scottish project pipeline.”
Alain Bernard, CEO of DEME group, said: “This transaction is a vital move for the DEME group in fulfilling its ambitions to be at the forefront of the growing tidal energy industry.
“Moreover, it consolidates the company’s presence in the UK as DEME’s involvement in the UK offshore business dates back to the early years of offshore wind.
“We look forward to working alongside Atlantis and SPR as shareholders in TPSL to develop and construct this unrivalled portfolio of projects.”
The DEME investment is subject to satisfaction of certain conditions expected to be achieved in the coming weeks.