Aquamarine Power rides £7 million wave of new funding

UK wave energy developer Aquamarine Power has secured £7 million in new funding a commitment of further support over the next two years to commercialise its Oyster technology.

The latest round of funding closed with £3 million committed by each of the company’s main shareholders, SSE Venture Capital (Scottish and Southern Energy’s ventures unit) and ABB. The Scottish Government’s enterprise agency, Scottish Enterprise, has also committed £1 million through the Scottish Investment Bank.

The three shareholders, SEE, ABB and Scottish Enterprise, are also working on an £18 million funding package that would take Aquamarine Power through to commercialisation of its wave power technology in 2014.

Making the announcement at the Scottish Low Carbon Investment Conference in Edinburgh, First Minister Alex Salmond commented:
“This is great news for Scotland’s world-leading wave power industry and a clear signal to the wider energy and investment community that marine technologies can be compelling investment propositions.”

Earlier this month, the company became the first in its sector to secure a £3.4 million loan from Barclays to complete a 2.4 MW Oyster array at the European Marine Energy Centre (EMEC) in Orkney.

“This new investment and further financial commitment from our existing shareholders is another tremendous vote of confidence in Aquamarine Power’s Oyster technology,” says CEO Martin McAdam. “Our goal is to start delivering the first pre-commercial marine energy array in Scotland in 2014.”

But McAdam says that the company still needs new shareholders to bring additional finance and technical expertise.

For further information:

Related stories:
Barclays backs Aquamarine Power’s marine energy technology (6-Sept)
Tidal Energy’s Welsh project secures investment from Carbon Trust (11-Aug)
Marine energy could be cost-competitive with onshore wind by 2025 (12-Jul)

27 September 2011