What it does
Tidal - MeyGen is a tidal project in the Pentland Firth comprising four 1.5 megawatt turbines installed on the site.
Simec Atlantis is the operator and largest shareholder at MeyGen, where plans are to increase markedly the number of turbines.
The company also recently formalised its joint venture in the stretch of water between France and the Channel Islands.
Normandie Hydrolienne has been established to harness up to two gigawatts (2GW) of power from the Alderney Race, the eight-mile straits that runs between Alderney and La Hague, France.
Atlantis has also been appointed to supply tidal generation equipment and offshore construction services for a demonstration project in Japan.
The Y1,800 (£13mln) project is in the straits of Naru Island and is being run by Kyuden Mirai Energy.
Waste to energy - Simec Atlantis is also converting the 220MW Uskmouth, Wales, power station to run on waste pellets.
First revenues might be in 2022 depending on planning permits with construction expected to take up to 18 months.
Simec Atlantis also is involved in research, consultancy, tidal projects in Indonesia, surface wave energy generation and tidal flows.
Hydro - Atlantis has acquired the maintenance business of GHR, which has long-term contracts at numerous Scottish hydro projects.
How it's doing
In February, Simec said its ts tidal turbine and generation equipment has been successfully installed in the Goto Island chain in Japan.
The tidal turbine clocked its first 10MWh (megawatt hours) of generation within the first ten days of operation and is now producing clean electricity in Japan.
The SAE designed and manufactured AR500 tidal turbine was assembled at its operations and maintenance base at Nigg Energy Park in Scotland.
The renewable energy pioneer said earlier in its interim results statement that it continues to see encouraging progress on all its key projects notwithstanding the operational challenges presented by COVID-19 social distancing restrictions.
In December, Simec entered into a share placing agreement with American investor New Technology Capital, which is to buy up to £12mln shares in the company.
What the boss says: Graham Reid, chief executive
“Goto Island is a huge milestone for the deployment of clean, renewable energy from tidal stream and we hope it will be the first of many tidal turbines installed in Japan,"
- Uskmouth used as a blueprint for other conversion projects
- More strong generating numbers at MeyGen
- Cashflow from GHR contracts
What the broker says: Investec
Investec initiated its coverage with a ‘buy’ recommendation and 75p price target.
Analyst Martin Young described SIMEC Atlantis as “a triple play on sustainability” monetising end-of-life waste, tidal stream power, and small-scale hydro.
Already a world leader in tidal stream power, thanks to the MeyGen Phase 1 project in Scotland, the Investec analyst pointed to the Uskmouth coal plant conversion project as another potential “game-changer”.
Securing planning permission and reaching financial close on the Uskmouth are seen as catalysts by Investec. The project can provide value accretion and would put SIMEC Atlantis on a road to profitability by 2023.