SIMEC Atlantis Energy Limited (LON:SAE) unveiled plans to raise funds to invest in a joint venture that will secure fuel supplies for its Uskmouth Power Station project as it reported a jump in 2019 results.
The alternative energy group announced plans to raise around £6mln through a placing of shares at 12p a share. Existing shareholders will be able to participate in the offering via the PrimaryBid platform on a first-come, first-served basis, with any investment request over £50,000 first requiring consultation with the company.
The funds from the share issue will be used to provide working capital and for investment in new fuel processing facilities via a joint venture (JV) with Dutch alternative fuels specialist N+P Group.
As well as securing the fuel supply for the Uskmouth conversion project the JV will provide exposure to future revenue opportunities from gate fees and sale of fuel to other projects.
“The continued focus on the transition to a carbon-neutral economy has received fresh impetus as a result of the impact of COVID-19 and countries around the world are looking at the opportunities presented by a move to a carbon-free economy as a way to grow our economies, create jobs and generate sustainable prosperity. Atlantis is a true pioneer in the field of renewable energy and our flagship projects have the potential to have a profound impact on the way we approach renewable and sustainable power generation globally,” SIMEC Atlantis chief executive officer, Timothy Cornelius said in a statement accompanying the group’s results for 2019.
Those results reflected the continued expenditure and investment it has made in its core project development activities, principally the Uskmouth Power Station conversion project and the MeyGen tidal energy project in Scotland.
Revenue in 2019 rose to £4.86mln from £2.22mln in 2018, with the bulk of those – £4.1mln – coming from the MeyGen project.
2019 saw the flagship MeyGen project deliver the longest ever period of uninterrupted generation from a multi-megawatt tidal turbine installation. The array continues to break world records and has now exported more than 30-gigawatt hours (GWh) of electricity to the grid.
The group has written off the carrying values of tidal development leases that are no longer considered to be worthwhile pursuing, resulting in a non-cash exceptional charge of £16.1mln; this charge was largely responsible for the loss before tax widening to £35.4mln from £24.1mln the previous year.
The consolidated group cash position at the end of 2019 stood at 4.5mln, compared to £9.3mln at the end of 2018.
Published at Thu, 06 Aug 2020 06:50:00 +0000-SIMEC Atlantis raising cash to form joint venture that will provide fuel supplies for Uskmouth project