A renewable energy specialist has sold its hydro power arm for £3 million.
Simec Atlantis Energy said the disposal of Green Highland Renewables (GHR) would simplify its structure and allow it to concentrate on other projects. GHR is based in Perth and was founded in 2007. It has developed dozens of hydro power schemes across Scotland as well as providing management and maintenance services.
VH Auslandsbeteiligungen, a German company, is buying a 90 per cent stake while Alex Reading, 43, who has been with GHR since 2009, is taking the other 10 per cent.
The German company is part of Voith Group, which makes items for the pulp, paper and automotive industries as well as providing hydropower and hydrogen equipment around the world.
The Aim-listed Simec Atlantis Energy intends to focus on its tidal energy division, which includes the MeyGen scheme off the north of Scotland, and its conversion of the Uskmouth power station in Wales into a biomass plant.
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It said the deal also brings in “necessary additional funding to support continuing group operations and the development of key projects”.
Simec Atlantis Energy, which has its headquarters in Edinburgh, counts Sanjeev Gupta’s GFG Alliance as a large minority shareholder.
GHR was purchased by Simec Atlantis Energy in October 2019 for £1 from Simec, which is the energy arm of GFG. Simec had bought GHR from Ancala Partners, a London investment group, in 2017 for an undisclosed sum.
GHR was said to have booked a pre-tax profit of £796,000 for 2020 and at the end of June had net assets of £2.4 million.
