The capital raised from the Australian Ethical International Equities Trust is to fund the construction of a world first multi-megawatt tidal stream project, led by Australian entrepreneur Tim Cornelius, called MeyGen.
Phase 1 of the project, located in the Inner Sound of the Pentland Firth between mainland Scotland and the Isle of Stroma, is expected to power 86,000 Scottish homes when at full capacity. Phase 2 could bring that figure up to 398,000 homes or 16% of all Scottish homes by 2023.
An initial phase for the MeyGen project is a six megawatt grid connected series of turbines targeting first power to the grid in 2016 which is enough to power 6,000 homes, and Atlantis has already secured planning approval for another 80 megawatts at the same site.
“Our Australian members’ superannuation will help pioneer another form of power generation that is 100% renewable and emission free, which is a fantastic outcome,” said Nathan Lim, Portfolio Manager of the Australian Ethical International Equities Trust.
“Australian Ethical is confidently investing not only in this ground-breaking renewable energy project but also in the extensive experience of Tim Cornelius and his team to navigate a complex macro and legislative environment in bringing this project to life.
This confidence also extends to the type of energy we are investing in, as ocean power is highly predictable with tidal patterns being accurately foreseeable years in advance, making this power highly dispatchable and able to narrow the reliability gap with conventional power generation.” concluded Lim.
Australian Ethical Investment has purchased 1.02 million shares of 11.477 million placement