MeyGen delivered £1.6 million from sale of power last year, says company annual report
Register for free to read more of the latest local news. It's easy and will only take a moment.
THE MeyGen tidal energy project in Caithness produced revenues of £1.6 million last year, according to the company behind the world-leading development.
The figure was revealed in the annual accounts of Simec Atlantis Energy, which operates the pioneering initiative in the Pentland Firth.
The annual report for the year ending in December 2021shows that MeyGen realised £1.6 million in revenue from the sale of power and Renewable Obligation Certificates.
Simec also received £3.5 million from its sale of Green Highland Renewables and raised £2.6 million through the issue of new ordinary shares but, overall, the group losses for the year were £74.1 million which was up by £54.7 million compared to £19.4 million figure in 2020.
The increased loss is the result of losses on assets and in particular the £32 million at Uskmouth Power station following the company's decision in April not to proceed with the power station conversion.
In May, the company, which has its headquarters in Edinburgh, announced it had entered into an agreement with Energy Optimisation Solutions and Quinbrook Infrastructure Partners to deliver a 230 megawatt battery energy storage system at the Uskmouth site. The project is expected to deliver around £40 million in revenue over 30 years and "represents a cornerstone project in the redevelopment of the Uskmouth site into a Sustainable Energy Park," says Simec.
The accounts state that group total equity in December 2021 amounted to £16.7 million, compared to £81.8 million in 2020.
As previously reported, the company got permission from its Atlantis Ocean Energy debenture holders to defer £4.9m of principal repayments due on 30 June 2022 for a year. In addition, the debenture holders agreed a three- month deferral of interest payments due at the end of June.
Simec chairman, Duncan Black, said: "The last 12 months have been a very challenging period for the group in which we have had to make a number of very difficult decisions. However, it has also been a period in which we have been successful in identifying and securing a number of new and exciting opportunities. I believe that we end the period with a clear path forward for the group, a significantly streamlined business, and a number of exciting projects under development that will deliver value to shareholders."
Company chief executive, Graham Reid, also referred to the "significant challenges" faced by the company in the past year but added: "I am incredibly proud that we’ve overcome most of these and I know we have the team, skills and assets in place to deliver long-term, sustainable growth for our business and our shareholders.
"Last year saw the company make some difficult but important decisions. While these have had short-term impacts on the business and our financial statements, I am convinced they are the right decisions which will ultimately deliver value to shareholders in the medium to long term."
