Atlantis Resources is to seek a Contract for Difference (CfD) of around £150 per megawatt-hour for its planned MeyGen Phase 1C tidal array in the Pentland Firth.
The Edinburgh outfit said it intends to ask the UK government to start bilateral negotiations for a 15-year CfD to proceed with construction of the 76MW project.
“The proposed price per megawatt-hour is half of the administrative strike price for our technology used in the recent auction rounds, and demonstrates our commitment to rapid and significant cost reductions,” the company said in its half-yearly report.
The second allocation round set a strike price of £300/MWh for tidal steam for 2021-22 delivery. Atlantis failed to secure price support for Phase 1C having bid in CfD2.
The company said the government has funds available because 40% of the £290m budget for the recent auction round was not allocated through the competitive process.
Atlantis meanwhile made a loss of £3.2m in the first six months of 2017 compared to a £4.8m deficit a year ago.
The developer expects to redeploy in early October its 1.5MW AR1500 tidal turbine at MeyGen 1A. The device was retrieved in April to allow a full systems inspection.
Image: MeyGen Phase 1A (Atlantis)
