Siemens Sells Tidal Energy Unit After Losing Faith in Sector

By Louise Downing

(Bloomberg) — Siemens AG offered its tidal-power unit to Atlantis Resources Ltd. after shedding religion in an business it stated was taking too lengthy to develop.

Turbine maker Atlantis takes possession of the unit’s six initiatives, the Singapore-based firm stated Wednesday in an e- mailed assertion, with out disclosing monetary phrases. Siemens acquires a ten p.c stake in Atlantis as a part of the deal.

Siemens was one of many first massive industrial corporations to enter the sea-energy business, shopping for Marine Current Turbines Ltd. in February 2012. As different renewable applied sciences comparable to photo voltaic and wind have minimize prices to develop into commercially viable, tidal and wave initiatives stay the costliest sources of energy at 4 instances the price of coal, Bloomberg estimates present.

“Siemens has had to settle for shares in Atlantis worth 2.5 million pounds ($3.8 million) at today’s price, for a business that it bought in 2010-12 for an estimated 20 million pounds,” stated Angus McCrone, a senior analyst at Bloomberg New Energy Finance. “The German company may not retain its stake in Atlantis for long, unless it suddenly becomes more positive about prospects for tidal stream.”

Siemens, primarily based in Munich, stated the sale of MCT was a part of “portfolio optimization,” in keeping with an e-mailed assertion. “Siemens and Atlantis have agreed to explore respective opportunities for the future,” it stated.

MCT’s initiatives in Wales, Northern Ireland and southern England will develop Atlantis’s potential put in capability to virtually 600 megawatts, making it one of many largest marine-energy corporations on this planet. The producer will arrange a turbine plant in Scotland as a part of the acquisition.

While the U.Okay. has stated wave and tidal power have the potential to ship a couple of fifth of its present electrical energy wants, Siemens determined final yr it might promote MCT saying the market and provide chain have been taking too lengthy to develop.

Last August, Bloomberg New Energy Finance revised its outlook for international tidal-stream energy capability in 2020, slicing its forecast by 11 p.c to 148 megawatts.