CorPower Ocean scores €9 million for HiWave-5 commercial-scale demo
Swedish company CorPower Ocean has secured a private investment of €9 million, bringing total equity funding to support the demonstration of its first commercial-scale wave energy device in the flagship HiWave-5 project to over €20 million.
The investment round was led by Midroc New Technology and included SEB Greentech, family offices and private investors, where Pareto Securities acted as Sole Manager and Bookrunner in the transaction.
The latest €9 million investment, combined with previous tranches of €9 million in July 2020 and €2.3 million in December 2018, brings total equity funding for HiWave-5 project demonstration, and its long-term development of supply and service capacity for commercial wave farms, to €20.3 million.
The HiWave-5 demonstration project aims to convert CorPower’s wave technology into a bankable product by 2024, by proving the survivability, performance and economics of a grid-connected array of wave energy converters in northern Portugal.
This is expected to unlock mainstream renewable project financing for commercial array projects developed by CorPower’s customers.
Patrik Möller, CEO of CorPower Ocean, said: “We are delighted to see continued strong support from investors who share our vision of bringing reliable and competitive wave energy technology to the world, unlocking one of the largest untapped sources of clean energy on earth. We welcome SEB Greentech VC and several new family offices and private investors as new shareholders in CorPower.”
CorPower Ocean’s new generation of high-efficiency wave energy converters are inspired by the pumping principles of the human heart. Advanced control technology allows large amounts of energy to be harvested using small, low-cost device, according to the company. A unique solution makes them resistant to storm waves, which provides survivability in the harshest ocean conditions, CorPower Ocean claims.
The equity, together with public investments from Sweden, Portugal and EU, brings the total funding secured for CorPower’s HiWave-5 program to €38 million, supporting the company’s pan-European efforts in Sweden, Portugal, Ireland, Scotland and Norway.
Göran Linder, CEO of Midroc New Technology, said: “We have high confidence in CorPower’s technology and the team’s ability to deliver on plan, and beyond, as demonstrated since our entry investment. We use a ‘stick-with-the-winner‘ approach to our investments and are happy to continue increasing our stake in CorPower through this funding round.
“The next stage of development will be particularly exciting – demonstrating the technology at commercial scale. We believe this new source of clean ocean energy will play a large role in future energy systems due to its predictable and consistent power profile helping balance the intermittency of wind and solar power”.
Markus Hökfelt, Head of SEB Greentech, added: “SEB is thrilled and proud to back this world-leading team in their advancements to harvest clean and cost-efficient energy from the oceans. It remains one of the most challenging and demanding environments to conquer and one in which many have failed.
“However, CorPower is delivering a rare combination of innovative technology and sound financial metrics to make it a reality. The economic and environmental benefits could be pivotal to the clean energy transition enabling a deeply decarbonized energy system around the world”.
CorPower Ocaen is currently fabricating its first commercial scale C4 device – a 9-metre diameter device with a weight of 60 tonnes and 300kW power rating.
Dry testing in Sweden is scheduled for the first part of 2021, before ocean installation at the Aguçadoura site in Portugal towards the end of the year.
This will be followed by three additional CorPower C5 machines in 2023 to form a pilot array and secure type certification, according to CorPower Ocean.
A 10-year marine license (TUPEM) has been secured for the use of the Aguçadoura site located offshore south of CorPower’s facilities in Viana do Castelo.