May 21 (Renewables Now) - Atlantis Resources (LON:ARL) has announced a proposed placing to raise up to GBP 20 million (USD 26.8m/EUR 22.8m), whose results are expected later today.
The company behind the 398-MW MeyGen tidal energy project in Scotland also said it has agreed further definitive documentation in relation to the acquisition, announced at the end of 2017, of a coal-fired power plant in South Wales from GFG Alliance's energy, infrastructure and natural resources business -- SIMEC Group Ltd. Atlantis is to acquire the Uskmouth plant and convert it so that 220 MW of its capacity would use a waste derived energy pellet as fuel.
The uses of the fundraising proceeds will include additional working capital of the enlarged business, paying down some debt, funding the front end engineering and design (FEED) study for the Uskmouth plant conversion, and resources for tidal project and technology development.
The cost of the conversion has been estimated at about GBP 185 million. A route to market power purchase agreement (PPA) has been signed with Marble, part of GFG Alliance, and a fuel supply deal has been signed with Fuel SPV, a joint venture between SIMEC Fuels and Dutch recycling company N+P Group BV.
(GBP 1 = USD 1.341/EUR 1.140)