SAE tidal division secures new investment
SAE is pleased to announce that on 19th October 2022 it agreed to the sale of a majority (approximately 79%) stake in its Advanced Tidal Engineering and Services division (“ATES”) to Proteus Marine Renewables Limited (“Proteus”). This division has been responsible for the design of Atlantis’ tidal turbines to date and the deployment and recovery of all turbines at the MeyGen site. The sale has no impact on SAE’s majority ownership of MeyGen plc, with ownership of the full project development rights and all four turbines at the MeyGen site remaining with MeyGen plc. SAE remains focused on the development of the MeyGen site following the recent award of a 28MW Contract for Difference (“CFD”).
The sale will allow the newly incorporated Proteus to grow its product and services offering across a broader scope of marine renewables whilst keeping its immediate focus on tidal energy.
SAE has retained a minority (approximately 21%) shareholding in Proteus and will continue to enjoy a strong relationship with the business and team through a Collaboration Agreement. SAE has also agreed on contracts to ensure the provision of ongoing services that will allow Proteus to provide continued support to the MeyGen operating tidal array.
SAE received an initial cash consideration for the sale of £0.5m and will receive a deferred cash consideration of up to €0.5m contingent on Proteus achieving financial close of the Raz Blanchard project. The sale significantly reduces Group operating costs, and together with the net sale proceeds, provides additional funding to support Group operations and the development of key projects. In 2021, ATES's pre-tax profit was approximately £0.4m and its net liabilities as at 30 June 2022 were approximately £0.5m.
The sale allows SAE to achieve its strategic objective of becoming a sustainable energy and battery storage project developer. The previous vertically integrated business model comprising a tidal turbine technology developer and a tidal project development business served its purpose in the early stages of the development of the tidal power industry. As the tidal power sector reaches maturity, as evidenced by the recent 28 MW MeyGen CFD award, it is the right time to separate the two businesses, allowing each to focus on its very different objectives.
Graham Reid, CEO of SAE, commented:
“We are proud to have developed the ATES business into what it is today and wish Drew and the team every success in the future. A key part of the sale is the agreements in place that ensure that it is business as usual for our existing tidal power projects but allows our focus to be on the delivery of the MeyGen site, the home of tidal energy.”
Drew Blaxland, CEO of Proteus commented:
“The formation of Proteus and the injection of private equity capital will give both companies the focus and means to build a pathway to affordable tidal stream power. In addition to servicing its responsibilities at MeyGen, Proteus will also be focused on completing its next round of technology advancement. Key locations for this include Japan and France, where Proteus is now the majority shareholder in Normandie Hydroliennes, which aims to deploy a 12MW pilot array in 2025, as part of the EC’s target of 1GW of marine energy by 2030.”
For more information, please contact:
| SIMEC Atlantis Energy Limited | +44 (0) 7739 832 446 |
| Sean Parsons, Director of External Affairs | |
| Investec Bank PLC – NOMAD and Joint Broker | +44 (0) 20 7597 5970 |
| Jeremy Ellis Ben Griffiths |
|
| Arden Partners PLC – Joint Broker | +44 (0) 20 7614 5900 |
| Ruari McGirr Simon Johnson |
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| Proteus | +44 (0) 7795 621 523 |
| Drew Blaxland, CEO |
Notes to Editors
SAE is a global developer, owner and operator of sustainable energy projects with a diverse portfolio in various stages of development.
https://www.saerenewables.com/
Proteus website: www.proteusmr.com