- SIMEC Atlantis shares surged 42.3% on a £2.5 million Scottish loan.
- The firm’s prospects are promising amid high demand for green energy.
- Investors hope that today’s news will lead to a sustained rally.
The SIMEC Atlantis Energy Ltd (LON: SAE) share price surged 42.3% after securing a £2.5 million non-convertible loan for its MeyGen project from Scottish Enterprise.
SAE will use the funds to rede[ploy the remaining two turbines at the project following the successful deployment of the AR1500 1.5MW tidal turbine in March 2022.
Also read: Five Best Green Energy Stocks in 2022.
Investors cheered the announcement, as evidenced by the rally in SAE shares after the London open. The first turbine will be redeployed in May 2022, with the final turbine being deployed in March 2023.
Simec will also retrofit a wet mate connection system that will make it easier to recover and redeploy turbines in future while halving the costs associated with the same.
Scotland’s MyGen project is the largest planned tidal stream project globally, and the recent redeployment of tidal turbines showcases the viability of tidal turbines as an energy source.
The turbines have far exceeded expectations when they are operational. The funding from Scottish Enterprise will ensure the MyGen project continues by supporting the deployment and operation of Simec’s tidal turbines.
Graham Reid, the SAE CEO, commented: “I would like to thank Scottish Enterprise for their continued support of the business and the MeyGen project. The successes and challenges we have faced on this project pave the way to establish a world leading industry in Scotland and bring huge economic and environmental benefits for Scotland and the UK. Our focus now is in ensuring our turbines are returned to operation as quickly and safely as possible.”
Kerry Sharp, Scottish Enterprise Director of Growth Investments, said: “Scotland is rightly known as a world leader in the marine sector and central to this is MeyGen. Scottish Enterprise has had a longstanding partnership with the project, and we look forward to developing this further as we support the energy transition and deliver sustainable economic growth for all of Scotland's communities.”
SAE shares have risen 25.7% in 2022 and could be headed higher if today’s announcement translates into a sustained rally. However, SAE shares have fallen 75.25% in the past 12 months, and investors would like to see it reclaim its past glory.
*This is not investment advice. Always do your due diligence before making investment decisions.
Simec Atlantis share price.
The Simec Atlantis share price squared by 42.26% to trade at 2.2050p, rising from Thursday’s closing price of 1.5500p.