Scotrenewables Secures GBP 7.6 Million for Tidal Energy Project (UK)

Orkney-based tidal energy firm, Scotrenewables Tidal Power, have secured £7.6 million worth of foreign investment as they look to design, build, install and test a next generation tidal turbine, the SR200.

The private funding from overseas adds to the £1.24 million grant the company received from the WATERS2 scheme run by the Scottish Government, Scottish Enterprise and Highlands and Islands Enterprise (HIE).

The grant, awarded in August 2012, helped leverage fresh investment from Norwegian shipping firm Fred. Olsen, French oil and gas multinational Total and Swiss technology company ABB Technology.

Alex Salmond, Scotland’s First Minister, said:

“Scotland is blessed with some of the greatest offshore energy resources on the planet and Orkney is home to EMEC (European Marine Energy Centre), the world’s leading centre for marine testing.

“Add this to our engineering and maritime expertise and our supportive investment environment and it is clear to see why Scotland’s wave and tidal energy industry is leading the way in technology and innovation, delivering jobs and investment to communities across Scotland.

“Scotrenewables’ announcement today of the details of their foreign investment package worth £7.6 million is terrific news and a huge vote of confidence in the Scottish offshore renewables industry.

“Together with the WATERS2 grant they were awarded by the Scottish Government this summer, it will allow them to finance the design, construction, installation and testing of their new-generation two-megawatt commercial-scale tidal turbine.

“This deal brings in a substantial amount of private funding from overseas – more than £6 in foreign investment for every £1 of public money. It is another example of how public money can be used to leverage private investment and help support industry to reach ever-more ambitious heights.”

Barry Johnston, Founder & Chief Executive Officer of Scotrenewables, said: “It is very positive not only that we have agreed terms in respect of a significant new investment from ABB-TV but also that our existing investors will be participating in this investment round. This is a major step on the road to making the company a real clean-energy success story.”

Mark Hamilton, Chief Technical Officer, said: “This addition of a new ‘technology partner’ to an already enviable investment team will give us the best possible backing as we progress the commercialisation of our innovative tidal technology. ABB involvement will allow us to tackle complex cabling and grid connection challenges thereby speeding the technology development process.”

John McGlynn, Business Development Manager, said: “The decision of ABB to invest in Scotrenewables Tidal Power Limited is a resounding endorsement of both the SRTT concept and the team that is developing it. The company already enjoys the backing of oil major TOTAL and Fred. Olsen Companies but now will also have access to ABB technical expertise, its highly developed supply chain network and global sales channels.”

WATERS is a collaborative venture between the Scottish Government, Scottish Enterprise and HIE, with funding from the European Regional Development Fund (ERDF).

Scotrenewables was one of five marine energy developers to secure grant awards totalling £7.9 million in the WATERS 2 funding round, announced in August, to further develop testing of new wave and tidal prototypes in the seas around Scotland.

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Press release, December 14, 2012; Image: scotrenewables