Simec Energy, part of Sanjeev Gupta’s GFG Alliance, has reached a ground-breaking agreement with global tidal power developers, Atlantis Resources Ltd, which will create a new force in the global renewable energy market.

Atlantis will acquire the 363-megawatt Simec Uskmouth Power Station in Newport and, in return, Simec Energy will own a 49.99 per cent share of Atlantis, which will be renamed Simec Atlantis Energy Ltd and become part of the GFG Alliance.

Simec Atlantis Energy aims to build a highly-diversified, global green power enterprise, driving forward the £200m conversion to renewable energy of Uskmouth Power Station, in addition to the development of the trailblazing Meygen tidal stream project in Scotland and the Wyre Estuary tidal barrage project in Lancashire.

The new entity would also look to acquire other Simec Energy power generation assets in due course and partner with Simec in developing new power assets.

Atlantis Resources is listed on the London Stock Exchange’s AIM which will make Simec Atlantis Energy the first member of GFG’s US$10bn turnover worldwide energy, metals and industrials group to be listed on public markets. Simec Atlantis Energy, as part of the GFG Alliance, will benefit from a close association with a broader energy, industrial, financial and real estate portfolio.

Sanjeev Gupta, GFG’s founder and executive chairman, said: “I am delighted to welcome Atlantis to the GFG Alliance with its highly-skilled team and ambitious projects. This is the first GFG Alliance member to be listed on the public markets, which in itself is a very important milestone for us. In addition, the potential for this business to create enormous value in the renewable energy market in the near term is tangible and very exciting.”

Tim Cornelius, chief executive of Edinburgh-headquartered Atlantis, said: “We are excited about the partnership with the broader GFG Alliance, which will accelerate the growth and diversification of our business. In the immediate term we will be fully focused on starting the conversion of Uskmouth as soon as possible. The establishment of a formal and long-term relationship with SIMEC and the GFG Alliance will be transformational for us. They are highly respected within the industry and will significantly enhance our visibility on the international stage. Together, we will now aim to build one of the largest diversified renewable generation and project development companies listed on the London Stock Exchange.”

Jay Hambro, GFG’s chief investment officer and chief executive of SIMEC Energy, added: “We believe in marine energy and in SIMEC Atlantis’ position as the sector champion. Atlantis has an excellent track record of delivery in renewable power projects, so our partnership with them will ensure the successful conversion of Uskmouth power station. We intend the South Wales site to be a centre of excellence for renewable power technologies and a hub for green power generation. This transaction forms a major part of our ambition to create 1gigawatt of renewable energy capacity in the UK within the next three years.”