Scotrenewables Secures Funding for Tidal Energy Project in UK
Scotrenewables Tidal Power Limited announces that it has agreed terms in respect of a major financing package totalling £8.84m which includes £1.24m in public funding from the Scottish Government as well as £7.6m in private investment from a trio of multinational backers.
The deal will see both of SRTP’s long-standing investors, shipping and renewable energy specialists Fred. Olsen and oil major TOTAL, participating in this round along with a new investor partner in ABB Technology Ventures. ABB-TV is the venture capital arm of the Swiss power and automation multinational and its decision to invest will allow SRTP access to ABB expertise in key technical areas which complement the offerings of SRTP’s existing investors.
Under the terms of the £7.6m investment deal ABB-TV will contribute £5m while the remaining £2.6m will come from SRTP’s existing investors. These funds will be injected in two equal tranches the second of which will be linked to the ongoing technical progression of SRTP’s proprietary technology. The £1.24m in funding awarded to SRTP in August 2012 under the Scottish Government WATERS 2 scheme was critical in leveraging the agreed terms for this substantial amount of foreign private investment.
The official announcement on the investment deal was made by Scottish First Minister Alex Salmond during First Minister’s Questions at the Scottish Parliament.
First Minister Alex Salmond said: “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.
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.
I welcome this investment, which is further evidence of Scotland surging ahead in the green energy revolution.”
The financing will fund the design, construction, installation and testing of the next generation commercial-scale Scotrenewables Tidal Turbine – rated at 2MW and known as the SR2000. This turbine, which is scheduled for completion in Spring 2014, will incorporate learning from successful grid-connected testing of the 250kW prototype currently ongoing at the EMEC Fall of Warness tidal test site and will be optimised for a fully commercial 20-year design life. The SR2000 will be the first of a number of commercial SRTT units installed in the Lashy Sound tidal demonstrator project in Orkney which was awarded ‘Agreement for Lease’ by the Crown Estate in early November 2012.
Barry Johnston – Founder & Chief Executive Officer: “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: “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: “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.”
Press Release, December 14, 2012