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FM welcomes Scotrenewables investment

13/12/2012

First Minister Alex Salmond welcomed today at First Minister's Questions the announcement by Orkney-based Scotrenewables Tidal Power Limited that they have finalised details of a package of foreign investment worth £7.6 million.

The total investment package will fund the design, construction, installation and testing of the next generation commercial-scale Scotrenewables tidal turbine, known as the SR2000.

The private investment from overseas is in addition to a £1.24 million WATERS2 grant from the Scottish Government awarded in August this year. The public funding has helped leverage the investment from Norwegian shipping company Fred. Olsen, French oil and gas multinational Total and Swiss technology giant ABB Technology Ventures.

The arrival of the latest technology partner being announced today – ABB – complements the existing investment team and demonstrates the great confidence that leading global firms have in Scotland’s renewables industry.

First Minister Alex Salmond said:

"Scotland is blessed with some of the greatest offshore energy resources on the planet and Orkney is home to EMEC (European Marine Energy Centre), the world's leading centre for marine testing.

"Add this to our engineering and maritime expertise and our supportive investment environment and it is clear to see why Scotland's wave and tidal energy industry is leading the way in technology and innovation, delivering jobs and investment to communities across Scotland.

"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. Together with the WATERS2 grant they were awarded by the Scottish Government this summer, it will allow them to finance the design, construction, installation and testing of their new-generation two-megawatt commercial-scale tidal turbine.

"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."

WATERS is a collaborative venture between the Scottish Government, Scottish Enterprise and Highlands and Islands Enterprise, with funding from the European Regional Development Fund (ERDF).  Scotrenewables was one of five marine energy developers to secure grant awards totalling £7.9 million in the WATERS 2 funding round, announced in August, to further develop testing of new wave and tidal prototypes in the seas around Scotland.

Images of Scotrenewables SR 250 (kW) tidal turbine prototype, pictured in Orkney in August this year, are available at the Scottish Government Flickr page.