On 21st August 2014 MeyGen Ltd. was successful in completing its drawdown of funding for the project. Financing to fully fund Phase 1A of the MeyGen project were fully committed and funds released to suppliers and construction contractors to enable the commencement of construction.
A total of £51.3 million was secured from syndicate members comprising the UK government, through the Department of Energy and Climate Change (“DECC”), Scottish Enterprise, Highlands and Islands Enterprise (“HIE”), The Crown Estate (“TCE”) and Atlantis Resources Ltd.
Of the total financing package, an aggregate of £17.5 million is in the form of senior project finance funding, comprising a £7.5 million project finance debt facility from Scottish Enterprise through its Renewable Energy Investment Fund (“REIF”) administered by the Scottish Investment Bank, and £10.0 million of funding from TCE. A further £13.3 million has been provided in the form of direct grants to MeyGen from DECC and HIE. The balance of £20.5 million is being provided as cash equity investment into Tidal Power Scotland Holdings Limited, the holding company of MeyGen, which has been established to invest in MeyGen and other tidal power projects in Scotland. Of this equity investment, £10.8 million is to be subscribed by Atlantis with Scottish Enterprise, through REIF, having committed to subscribe the balance of equity amounting to £9.7 million, with all such equity to be subscribed in a series of tranches over the coming months. Once all of this equity has been subscribed, Atlantis’s holding in MeyGen will be 83 per cent and Scottish Enterprise’s holding, as a new shareholder, will be 17 per cent.