Atlantis Resources Limited (LON:ARL) stands to gain if the UK government takes on advice from experts to use marine renewable energy to meet new requirements to tackle climate change.
A report by think tank Offshore Renewable Energy (ORE) said tidal power and wave energy is capable of passing the government’s new so-called “triple test”.
The test includes three benchmarks - reducing carbon emissions, cutting the cost of producing electricity and developing the UK into a world leader of renewable energy technologies.
Marine renewable energy projects to add jobs and boost economy
The think tank called on the government to invest in new technologies or face losing out to global competition.
Should the government act on the recommendation, ORE predicts a boom in the tidal power and wave energy sector over the next 20 years.
The ORE estimates projects in the tidal stream industry could generate a net cumulative £1.4bn for the UK economy and support 4,000 jobs by 2040, mainly in Scotland, Wales and the South West of England.
It expects wave energy to contribute £4bn to the UK economy and support 8,100 jobs by 2040.
“The findings of our research are encouraging, with the potential for significant economic benefits to be realised from the UK marine energy resources,” said Dr Stephen Wyatt, ORE Catapult’s research director.
Atlantis Resources ahead of the game
There are around 20 tidal power technology developers in the UK.
MeyGen in Scotland’s Pentland Firth is the world’s largest tidal energy plant under construction.
Atlantis Resources indirectly holds a 92% shareholding in in Mygen via Tidal Power Scotland Limited, which in turn owns 83.5% of MeyGen Limited alongside Scottish Enterprise.
Last month, Atlantis Resources said MeyGen had formally entered the 25-year operations phase after completing Phase 1A of construction of the project.
READ: Atlantis Resources says MeyGen project has formally entered the operations phase
The plant has generated roughly 6GWh (gigawatt hours) of energy to date and in March set a new world record for monthly production from a tidal stream array, generating 1,400MWh (megawatt hours).
"Seeing the MeyGen project move into the operations phase is another major milestone on the path to commercialising tidal stream energy,” said Tim Cornelius, the chief executive officer of Atlantis Resources.
“This achievement is a triumph of public policy and a demonstration of what can be achieved when government and the private sector roll their sleeves up and decide to create a whole new industry together," he declared.