Siemens has announced it is to sell Marine Current Turbines (MCT), the tidal energy firm it bought in 2012, stating its decision was based on the slow pace of development in the industry.
The German engineering firm said a strategic review had concluded that it should divest its ocean power generation business, in particular MCT, in a move that would affect 45 employees in the Hydro & Ocean unit in the company's Wind Power & Renewables division. The divestment is expected to take several months.
In a statement, Siemens said the market and associated supply chain had not developed at the speed expected. "A dedicated tidal power industry of critical size will develop in the near future. But due to the limited resources it would be a niche market for Siemens," it said.
If a buyer is not found for the business, and restructuring is needed, Siemens said it would prioritise redeployment of employees within the company.
The news is a further blow to the marine and tidal industry, as late last week it was announced that wave power company Pelamis had been placed into administration after it had failed to find funding for development.
