floating, wave-powered data center, a deal by Singapore-based tidal energy developer Atlantis Resources to acquire Current Resources means we could be moving closer to seeing the first commercial-scale turbine farm built under the ocean.
The deal will allow Atlantis to scale up its operations and to deliver its first large projects by combining its technological know-how with Current Resources' expertise in project origination. It will also make Morgan Stanley, Current Resources' owner, Atlantis' largest shareholder.
Atlantis, which was founded in 1996, manufactures two types of sub-sea turbines: The 400 kilowatt Nereus, a horizontal axis turbine, is meant for shallow (under 25 meters) waters while the more powerful 500 kW Solon, a ducted horizontal axis turbine with a unique blade design, is targeted for water depths exceeding 40 meters. Their impact on the surrounding habitat and wildlife is negligible, and the turbines can be connected off-grid, even in remote locations, just like offshore wind installations.
Both technologies have been extensively tested and developed with the intent of deployment in commercial-scale installations. The company claims the turbines have been independently rated as the top two tidal energy technologies for performance, efficiency and commercialization potential.
It estimates that the various sources of water-based power, including tidal current, wave and ocean thermal energy conversion, represent a huge supply of untapped power -- up to 4,000 terawatt hours of energy per year, or enough for the United States and United Kingdom to meet 15 percent of their power needs (using their rivers and ocean currents).
In an interview with FinanceAsia, CEO Timothy Cornelius said he wanted Atlantis to become an end-to-end supplier of tidal energy technology. Each farm, which will consist of 5 to 10 turbines, will have a capacity of around 1 to 2 megawatts; Cornelius said his company plans on having the first farms up and running by June next year. The first commercial-scale installations, which will have a capacity between 150 and 500 megawatts, will start being deployed in 2011.
In addition to building up its capacity in Australia, where it has had a 150 kW turbine connected to the grid since 2006, Atlantis is looking for sites in North America, Europe and Asia where it can conduct trial demonstrations. Cornelius thinks China offers the most potential for growth since its shallow-water turbines could also be deployed in the country's many rivers. Other Asian countries, such as South Korea and Japan, have some of the world's largest tidal resources and so have the potential tio become large markets.
Like other tidal energy developers, Atlantis can expect to face scrutiny about the scalability and capacity of its turbines, though it has some trial results to back up its ambitious claims. Unlike BioPower Systems, Hydro Green Energy and others who are primarily focused on building smaller, 250-1000 kW arrays, Atlantis' commercial installations could begin to make a serious dent in the renewable energy sector if their individual capacities do reach 500 MW. (By comparison, a conventional nuclear power plant produces about three times as much energy, which is enough to supply hundreds of thousands of homes.)
Even if that were to happen, it's still a long ways off, however, which means that tidal energy projects will likely only constitute a small slice of the renewable energy pie for the time being.
