Picture of the Vestmannasund strait in the North West part of the Faroe Islands. Photo: Warren Cardwell

Minesto signs PPA with electric utility SEV for utility-scale tidal energy installations

February 19, 2020

Leading marine energy developer Minesto has signed a power purchase agreement (PPA) with the Faroese electric utility company SEV, advancing the parties’ collaboration to integrate tidal energy in the Faroe Island’s electricity mix. The PPA comprises both the planned installations of two 100kW systems of Minesto’s subsea kite technology and an additional 2MW capacity allocated for installations of utility-scale tidal energy systems in the Faroe Islands. 

Minesto and SEV has initiated a first phase of collaboration to integrate tidal energy through Minesto’s Deep Green technology in the Faroe Islands, by installing and operating two grid-connected DG100 systems in the Vestmannasund strait.

The long-term ambition is a large-scale build out of tidal energy, estimated to approximately 30–70MW installed capacity, as a core energy source in the Faroe grid mix. The Faroe Islands have set a goal of producing their entire electricity need from renewable energy sources by 2030, including transport and heating.

The signed PPA comprise a total installed capacity of up to 2.2MW and covers both the initial installations in Vestmannasund as well as the next phase of collaboration between Minesto and SEV, which targets installations of utility-scale systems of at least 1MW rated power.  

Dr Martin Edlund, CEO of Minesto said: “We are pleased to advance our collaboration with SEV. In the Faroe Islands, we are part of one of the most ambitious energy transition schemes in the world. It is an ideal context to show how ocean energy from our unique technology complements solar and wind power to create a sustainable energy system.”

Hákun Djurhuus, CEO of SEV said: “We are looking forward to the introduction of tidal power in the Faroe Islands’ energy mix, and the potential scaleup of capacity by Minesto’s technology. Predictable energy from tidal streams could have great impact on the buildout of electricity generation and storage capacity in the Faroe Islands over the next decade, as we move towards our vision of a 100 percent renewable energy system.”

For additional information please contact

Magnus Matsson
Head of Communications & Investor Relations, Minesto AB
+46 31 774 14 89
press@minesto.com

The information in this press release is such that Minesto AB (publ) shall announce publicly according to the EU Regulation No 596/2014 on market abuse (MAR). The information was submitted for publication, through the agency of the contact person set out above, at 13:00 CET on 19th of February 2020.

About Minesto

Minesto is a leading marine energy technology company with the mission to minimise the global carbon footprint of the energy industry by enabling commercial power production from the ocean.

Minesto’s award winning and patented product, Deep Green, is the only verified marine power plant that operates cost efficiently in areas with low-flow tidal streams and ocean currents.

With more than €40 million of awarded funding from the European Regional Development Fund through the Welsh European Funding Office, European Innovation Council and InnoEnergy, Minesto is the European Union’s largest investment in marine energy to date.

Minesto was founded in 2007 and has operations in Sweden, Wales, Northern Ireland and Taiwan. The major shareholders in Minesto are BGA Invest and Midroc New Technology. The Minesto share (MINEST) is traded on Nasdaq First North Growth Market. Certified Adviser is G&W Fondkommission, email: ca@gwkapital.se, telephone: +46 8 503 000 50.

Read more about Minesto at www.minesto.com

Press images and other media material is available for download via bit.ly/Minesto_media.