The deal will see both of SRTP's long-standing investors, shipping and renewable energy specialists Fred Olsen and oil major TOTAL participating in this round along with a new investor partner in ABB Technology Ventures. ABB-TV is the venture capital arm of the Swiss power and automation multinational and its decision to invest will allow SRTP access to ABB expertise in key technical areas which complement the offerings of SRTP's existing investors.
Under the terms of the £7.6M investment deal ABB-TV will contribute £5M while the remaining £2.6M will come from SRTP's existing investors. These funds will be injected in two equal tranches the second of which will be linked to the ongoing technical progression of SRTP's proprietary technology. The £1.24M in funding awarded to SRTP in August 2012 under the Scottish Government WATERS 2 scheme was critical in leveraging the agreed terms for this substantial amount of foreign private investment.
The financing will fund the design, construction, installation and testing of the next generation commercial-scale Scotrenewables Tidal Turbine – rated at 2MW and known as the SR2000. This turbine, which is scheduled for completion in Spring 2014, will incorporate learning from successful grid-connected testing of the 250kW prototype currently ongoing at the EMEC Fall of Warness tidal test site and will be optimised for a fully commercial 20-year design life. The SR2000 will be the first of a number of commercial SRTT units installed in the Lashy Sound tidal demonstrator project in Orkney which was awarded ‘Agreement for Lease’ by the Crown Estate in early November 2012.
