Minesto strengthens tidal energy buildout plans for Faroe Islands

Outlook & Strategy

January 23, 2023, by Amir Garanovic

Swedish marine energy company Minesto and Faroese utility company SEV have renewed and expanded the collaboration agreement related to tidal energy buildout in the Faroe Islands.

An important add-on to the extended agreement stipulates the exclusive nature of the collaboration regarding the Hestfjord site development and build-out, according to Minesto.

This aspect facilitates and supports the ongoing work to create an attractive investment and the set-up of a special purpose vehicle (SPV) to funnel project investments, power purchase agreement (PPA), potential public funding, and other assets.

The agreement also outlines the expanded operation at the existing Vestmanna tidal energy production site.

Minesto recently completed the Dragon 4 site with a second subsea foundation and additional electrical infrastructure. Onshore installation works for the 1.2MW Dragon 12 are performed in parallel, the company noted.

The collaboration is based on sharing of production and performance data from ongoing operations as well as in-depth analysis of site characteristics of the existing and planned site locations for joint business case assessments.

Martin Edlund, CEO of Minesto, said: “Strengthened and extended collaboration with the utility company SEV is a corner stone for Minesto in creating one of our first tidal energy arrays. SEV’s role as a pioneer customer, infrastructure provider and obvious leading local actor is highly appreciated and valued.”

Hákun Djurhuus, CEO of SEV, added: “Minesto has shown a strong commitment to the Faroe Islands operations and the technology is in steady progress. We are looking forward to the upcoming scale-up of the dragons as well as continued site development work in Hestfjord.”