Thursday 29 October 2015

UK wave energy firm calls in administrators

A wave energy company based in Edinburgh has called in administrators.

Aquamarine Power had been testing its 'Oyster' wave energy machines at the European Marine Energy Centre (EMEC) in Orkney.

The economic climate however is said to have “significantly” affected the business.

Aquamarine said its 14 employees would be retained as attempts are made to sell the company.

Accountancy and business advisory firm BDO LLP will take over the running of the firm.

James Stephen, BDO Business Restructuring Partner said: “The lack of private sector backing to supplement public funding support placed the company under cash flow strain and the directors concluded the best prospect of concluding a transaction was via the protection of administration.

"We are continuing discussions with interested parties who were in discussions with the company prior to our appointment and are working closely with the Aquamarine Power board to engage with other potential purchasers."

Paddy O'Kane, CEO of Aquamarine Power said: "Oyster is the only wave technology to have proven it can operate in all ocean conditions and we have superb understanding of how well Oyster captures energy at sea. However, today's news underscores the financial as well as technical challenge in bringing an entirely new form of energy generation to commercialisation. New private sector funding is required now to deliver our technology roadmap."

Earlier this year, Aquamarine Power secured an €800,000 (£573,297) grant from the EU as well as a £2 million grant for a joint project from Wave Energy Scotland.