Atlantis Resources Limited (LON:ARL) has signed a heads of terms agreement with the Duchy of Lancaster for an option on the long-term lease of the riverbed required to develop the Wyre estuary tidal barrage and flood protection project.
The AIM-listed tidal marine power generation group said it will now work with the Duchy of Lancaster, the Wyre and Lancashire councils, and local stakeholders to progress the project.
WATCH: Atlantis Resources agrees terms for long-term lease to develop Wyre estuary project
It added that the process of obtaining all necessary consents to begin development is expected to take approximately three years.
Atlantis noted that feasibility studies indicate that the Wyre project's optimal installed capacity is 160 megawatts (MW), with forecast production of almost 300 gigawatts per hour (GWh) of sustainable energy each year.
Atlantis said it believes that the Wyre estuary is ideally suited to be a low cost barrage project and the pathfinder for a series of similar barrage projects being planned across the UK.
Tidal barrages to provide "good balance" for UK's renewable portfolio
Tim Cornelius, CEO of Atlantis, said: "We believe our tidal barrage and flood protection project in the Wyre estuary offers a route to low cost, predictable and sustainable domestic electricity supply.”
READ: Atlantis Resources confident of CfD deal for MeyGen tidal power project
He added: “This is the pathfinder project the UK government is looking for, with the potential to facilitate wide-scale development of the UK's enviable tidal range resources.”
Cornelius concluded: "Tidal barrages will also provide a good balance for the UK's renewable portfolio which is currently heavily weighted with intermittent offshore wind.”
In late afternoon trading, shares in Atlantis Resources were up 0.6%, or 0.25p at 41.75p.
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