Wave energy technology developer CorPower has announced it has extended its equity funding to €20.3 million for the commercial scale demonstration of its technology after securing a private placement of €9 million.
The investment round was led by Midroc New Technology and included SEB Greentech VC, family offices and private investors. Pareto Securities acted as Sole Manager and Bookrunner in the transaction.
The €9 million investment announced this week combined with previous tranches of €9 million in July 2020 and €2.3 million in December 2018 will support the demonstration of CorPower’s first commercial scale Wave Energy Converters (WEC) in the flagship HiWave-5project - and its long-term development of supply and service capacity for commercial wave farms.
The equity together with public investments from Sweden, Portugal and EU brings the total funding secured for CorPower’s HiWave-5 program to 38 million, supporting CorPower’s pan-European efforts in Sweden, Portugal, Ireland, Scotland and Norway.
“We are delighted to see continued strong support from investors who share our vision of bringing reliable and competitive wave energy technology to the world, unlocking one of the largest untapped sources of clean energy on earth,” commented Patrik Möller, CEO of CorPower Ocean. “We welcome SEB Greentech VC and several new family offices and private investors as new shareholders in CorPower."
The HiWave-5 demonstration project aims to convert CorPower’s wave technology into a bankable product by 2024, by proving the survivability, performance and economics of a grid-connected array of WECs in northern Portugal. This will unlock mainstream renewable project financing for commercial array projects developed by CorPower’s customers.
“We have high confidence in CorPower’s technology and the team’s ability to deliver on plan, and beyond, as demonstrated since our entry investment,” explained Göran Linder, CEO of Midroc New Technology. “We use a ‘stick-with-the-winner' approach to our investments and are happy to continue increasing our stake in CorPower through this funding round. The next stage of development will be particularly exciting – demonstrating the technology at commercial scale. We believe this new source of clean ocean energy will play a large role in future energy systems due to its predictable and consistent power profile helping balance the intermittency of wind and solar power.”
Markus Hökfelt, head of SEB Greentech VC, added: “SEB is thrilled and proud to back this world-leading team in their advancements to harvest clean and cost-efficient energy from the oceans. It remains one of the most challenging and demanding environments to conquer and one in which many have failed. However, CorPower is delivering a rare combination of innovative technology and sound financial metrics to make it a reality. The economic and environmental benefits could be pivotal to the clean energy transition enabling a deeply decarbonized energy system around the world.”