Atlantis Resources, the tidal power group, has signalled that its Meygen Phase 1A project in the Pentland Firth will be fully operational in a matter of weeks.

This comes as the company said it intended to ask that the UK Government to consider awarding a 15 year contract for difference (CfD) which would allow it to proceed with the construction of Phase 1C of the MeyGen project without further delay.

Phase 1B, or Project Stroma, is already underway thanks to European Union funding through the Horizon 2020 initiative.

The move comes after the company lost out in the recent CfD auction for renewable projects, which prompted chief executive Tim Cornelius to say it would be a “travesty” if the UK did not make the most of tidal power because funding is being concentrated on offshore wind.

John Neil, chairman of the group, said the increase in energy demand “must be met by affordable, secure and clean sources of supply”, noting that “tidal stream generation from our waters can achieve all three of these objectives and meet an estimated 20 per cent of the UK’s electricity demand.”

He said Phase 1C could be funded through the £116m which was not allocated in the most recent CfD auction round.

In the first six months of the year, the company narrowed pre-tax losses to £3.2 million, assisted by the inclusion of more than £3m in grants and other income during the period.

Phase 1A has now generated more than two gigawatts of energy which equates to £600,000 of revenue, of which £100,000 was made in this period.

The unaudited cash position was £6.9m.