AWS Ocean Energy wins £2m investment for marine power system
16th February 2010
Inverness-based marine energy technology company, AWS Ocean Energy, has secured £2 million of investment to help it commercialise its floating wave energy system, AWS-III.
AWS Ocean Energy
has secured funding for its multi-megawatt (MW) offshore wave energy generator, now known as AWS-III
, through Scottish Enterprise
and the Shell Technology Ventures Fund 1
(STVF1). The company says the new investment will enable it to move forward with its plans to develop and deploy the system, as well as help the company in its work to design associated technologies, such as mooring systems, for wider use in the wave and tidal
The AWS-III has evolved from the award-winning Archimedes Waveswing ™ technology and the new investment follows a review of the AWS Ocean's technology, which the company claims has resulted in "significant improvements to the system". The improvements mean AWS Ocean is now aiming to deploy a full systems test of the AWS-III during 2011 and to deploy a pre-commercial demonstrator plant, with a generating capacity of between 2.4 MW and four MW, during 2013.
Simon Grey, chief executive of AWS Ocean Energy, said the new funding would enable the AWS Ocean to deploy a technology that could compete with other renewable energy systems. “It is not sufficient to produce a machine that works – we need to produce a machine that can generate electricity at a competitive cost.
“Making sure our customers can make adequate returns from AWS wave power on current tariffs is essential. Also essential is the ability to achieve rapid roll-out and the large scale of AWS-III contributes to both of these."
AWS-III secures funding from Scottish Co-investment Fund
The funding is the first investment AWS Ocean has secured from Scottish Enterprise through its £72 million equity investment fund, the Scottish Co-investment Fund. It marks the second tranche of investment from STVF1, an affiliate of Royal Dutch Shell. STVF1 is managed by Kenda Capital B.V.
Andrew Sloane, senior investment manager at Scottish Enterprise, said: “This is an exciting investment for Scottish Enterprise, not only because the company is at the vanguard of wave power technology, but also because it marks our first venture with new investment partner Kenda Capital. Going forward, we hope our partnership with Kenda Capital will provide other companies in the already strong Scottish renewables sector with the risk capital required to grow and take advantage of new markets.”