Atlantis Resources shares rose three per cent as the AIM-listed company unveiled £12.9million of new funding for its flagship project in the Pentland Firth.
The company said the European Commission's Climate Change Committee had approved the transfer of 16.7m euros of funding to Atlantis's MeyGen project, the world's largest planned tidal stream energy project.
The cash had previously been earmarked for the Kyle Rhea project, a tidal stream array project between the Isle of Skye and the Scottish coast initiated by the Marine Current Turbines group. Atlantis acquired MCT in an all-share deal three months ago as Siemens exited the sector.
The funding is for MeyGen’s second phase known as Project Stroma and will accelerate its development, which is now targeted to reach financial close and start construction during 2016.
The EC’s approval enabled the funding, from the NER 300 programme supporting innovative renewable energy technologies, “to be retained for the benefit of a more advanced Scottish tidal energy project”, Atlantis said.
The first tranche of 10 million euros will be made available on 1 April 2016.
Tim Cornelius, chief executive of Atlantis, said: “Construction of MeyGen Phase 1A continues apace with first generation scheduled for next year.
These developments further underline the benefits of the MCT acquisition.”
He added: “The EC's continued support for tidal power via the MeyGen and the Sound of Islay projects underlines Scotland's position as the world's leading tidal power region and reflects the strong support the industry has received from the Scottish government.”
Last month Atlantis said it was relocating its corporate headquarters from Singapore to Edinburgh.
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