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Abundance to invest in Atlantis Future Energy

Published 31 January 2018

Abundance Investment is offering to invest £5m in Atlantis Future Energy, a newly formed company and wholly-owned subsidiary of Atlantis Resources Limited.

In December 2017, AIM-listed Atlantis announced plans to buy Uskmouth power station near Newport, Wales, from SIMEC Energy part of the GFG Alliance.

Atlantis now intends to build a global portfolio of sustainable energy generation assets in partnership with GFG Alliance, starting with the conversion of Uskmouth power station from using coal as its fuel to sustainable energy pellets derived from industrial and commercial waste which would otherwise go to landfill.

Funds from this offer will support this project and will also be used to develop Atlantis’ plans for the Wyre tidal power and flood protection scheme in Lancashire, England.  

This new investment offer follows Abundance’s successful fundraise in June 2017 for Atlantis whose flagship tidal project, MeyGen, off the coast of Scotland, is the world’s first multi-megawatt, multi-turbine tidal power project.

The debenture on offer is on similar terms as the previous investment for fellow Atlantis subsidiary, Atlantis Ocean Energy: a 5-year debenture, paying 8% a year. Like all Abundance offers, investment starts from only £5 and the debentures can be held tax-free in an Innovative Finance ISA. The bond offer seeks to raise a minimum of £2 million and up to £5 million.

Atlantis Resources CEO Tim Cornelius said: “Our partnership with the GFG Alliance is going to be transformational for Atlantis.  All this activity gives us the opportunity to use new capital to push ahead with our portfolio, with a particular focus on the development of the Uskmouth power station conversion and the Wyre Gateway tidal power and flood protection project.

"We believe the future has never been brighter for Atlantis and are delighted to work with Abundance again to offer ordinary investors the opportunity to help us realise our ambitions to grow our diversified sustainable energy business and share in its financial returns.”

For Abundance, the new offer is not only a move into exciting new technology and a step up in scale, but a natural progression from its involvement with the government’s Green Finance Task Force as it advises on implementing the Clean Growth Strategy.

Abundance co-founder and joint managing director Bruce Davis said: “Green investment has come of age and stepped out of its niche. As advisers to the government on Green Finance, we expect to see more deals like this from visionary businesses driving the transition to a sustainable economic future. 

"Abundance has shown that individual investors have the reach to support clean growth projects across the UK and now we want to show we also have the scale to make a significant difference to greening the UK's energy supply.”

When the conversion process is complete, Uskmouth power station is expected to operate at a generation capacity of 220 MW. The fuel will be supplied under a 20-year fixed price agreement by a joint venture between the GFG Alliance and the N+P Group which owns the processing technology.

The power generated will be sold under 20-year power purchase agreements to another GFG Alliance company as well as the joint venture between the GFG Alliance and N+P Group.

Uskmouth will comply with the latest best practice on emissions, while the fuel pellets to supply the plant will be produced in the UK using modern technology and meeting a tightly controlled specification which ensures they are suitable for combustion.

Bruce Davis added: “Abundance continues to give our investors the chance to support a broad spectrum of green energy projects with a range of risk/reward profiles. They include established grass roots technologies from independent generators such as Monnow Valley CHP as well as exciting new innovations like this new offer from large players like Atlantis. In the past year our customers have also put their money into tidal, geothermal, biofuels and energy efficiency.”

Source: Company Press Release