Minesto Terminates GBS Foundation Supply Deal; Seeks New Supplier

Minesto has decided to engage a new supplier for the construction of a gravity-based structure (GBS) foundation for the company’s first Deep Green installation in Holyhead Deep, as a consequence of the discontinuation by current supplier Ocean Resource.

“We have taken immediate actions to ensure the continuation of the Holyhead Deep project,” said Martin Edlund, CEO of Minesto.

Ocean Resource, who was originally awarded the delivery of the GBS foundation for the first commercial-scale installation of Minesto’s marine energy power plant Deep Green, has informed Minesto that they can no longer meet their financial commitments to their subcontractors, leaving them unable to fulfill their contractual obligations with regards to Minesto.

The scope of the contract with Ocean Resource consists of the design, manufacturing and delivery to Holyhead of one GBS foundation.

The design phase has been completed, with the construction phase having been initiated for a few weeks when Ocean Resource informed Minesto of their financial situation.

As a result of Ocean Resource’s inability to continue the project, Minesto has no option but to accept a termination of the contract with Ocean Resource and engage with a new supplier to build the GBS foundation, the company said.

“We have taken immediate actions to ensure the continuation of the Holyhead Deep project and our long-term commitment in Wales. Suppliers have been evaluated and shortlisted and negotiations with them are ongoing. To keep the project on track and minimize any delays and other risks associated with this situation, we intend to engage a new supplier within short,” said Martin Edlund, CEO of Minesto.