Martin Williams
An Edinburgh-based firm behind what was described as the world’s largest
commercial wave energy farm has called in administrators while it looks for
a new investor.
Wave energy developer Aquamarine Power, whose Oyster 800 device was hailed
as the future of marine energy, said administrators BDO LLP will take over
the running of the company as they seek a sale or investment through the
process.
In 2013, it emerged its scheme which would see the installation of “the
world’s first ever” fully consented array of up to 50 wave devices in 10m
of “some of the wildest seas in the world off the north west coast of Lewis
in the Hebrides.
The project along the coast at Lag na Greine, near Fivepenny Borve,
described as one of the best wave energy locations in Europe, was to power
nearly 30,000 homes.
BDO said the firm, which has also been working on a key wave energy project
in Orkney, had been “significantly affected” by the economic climate and a
lack of private-sector backing to supplement public funding.
Joint administrators James Stephen and Graham Newton will continue to trade
the company with a view to achieving a sale as a going concern, BDO said.
The firm’s 14 employees are all being kept on.
The move to appoint administrators followed a decision by the Aquamarine
Power board on Tuesday.
The wave energy developers have been testing their full-scale Oyster wave
energy machines at the European Marine Energy Centre (EMEC) in Orkney.
Mr Stephen, a BDO business restructuring partner, said: “Whilst the company
has seen many successes over the last few months, including securing an
800,000 euro (£580,000) grant from the EU as well as a £2 million contract
from Wave Energy Scotland, the economic climate has significantly affected
the business.
“The lack of private-sector backing to supplement public funding support
placed the company under cashflow strain and the directors concluded the
best prospect of concluding a transaction was via the protection of
administration. The company holds liquid funds which will allow this
strategy to be pursued.
“We are continuing discussions with interested parties who were in
discussions with the company prior to our appointment and are working
closely with the Aquamarine Power board to engage with other potential
purchasers. We welcome new enquiries.”
Aquamarine Power’s chief executive Paddy O’Kane said: “The team at
Aquamarine Power has worked tirelessly over many years to design, build and
demonstrate Oyster wave energy machines.
“During this time we have achieved a number of major milestones that have
put our technology at the forefront of the industry.
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“Oyster is the only wave technology to have proven it can operate in all
ocean conditions and we have superb understanding of how well Oyster
captures energy at sea.
“However, today’s news underscores the financial as well as technical
challenge in bringing an entirely new form of energy generation to
commercialisation. New private-sector funding is required now to deliver
our technology roadmap.”
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