Minesto to engage new supplier of GBS foundation

Minesto has decided to engage a new supplier for the construction of a gravity-based structure (GBS) foundation for the company’s first Deep Green installation in Holyhead Deep, as a consequence of the discontinuation by current supplier Ocean Resource Ltd.“We have taken immediate actions to ensure the continuation of the Holyhead Deep project”, says Martin Edlund, CEO of Minesto.

Ocean Resource Ltd, who was originally awarded the delivery of the GBS foundation for the first commercial-scale installation of Minesto’s marine energy power plant Deep Green, has informed Minesto that they can no longer meet their financial commitments to their subcontractors, leaving them unable to fulfil their contractual obligations with regards to Minesto.

The scope of the contract with Ocean Resource consists of the design, manufacturing and delivery to Holyhead of one GBS foundation. The design phase has been successfully completed, with the construction phase having been initiated for a few weeks when Ocean Resource informed Minesto of their financial situation.  

As a result of Ocean Resource’s inability to continue the project, Minesto has no option but to accept a termination of the contract with Ocean Resource and engage with a new supplier to build the GBS foundation.

“We have taken immediate actions to ensure the continuation of the Holyhead Deep project and our long-term commitment in Wales. Suppliers have been evaluated and shortlisted and negotiations with them are ongoing. To keep the project on track and minimise any delays and other risks associated with this situation, we intend to engage a new supplier shortly”, says Martin Edlund, CEO of Minesto.

For additional information please contact:

Dr Martin EdlundCEO, Minesto AB+46 31 29 00 60press@minesto.com 

Magnus MatssonCommunications Manager, Minesto AB+46 70 570 75 08press@minesto.com

About Minesto

Minesto is a marine energy technology company with the mission to minimise the global carbon footprint of the energy industry by enabling commercial power production from low-velocity tidal and ocean currents.

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

In May 2015, Minesto secured a €13m investment from the European Regional Development Fund through the Welsh European Funding Office, for the commercial rollout of Deep Green.

Minesto was founded in 2007 and has offices in Gothenburg, Sweden, Holyhead, Wales and Portaferry, Northern Ireland. The major shareholders in Minesto are BGA Invest and Midroc New Technology. The Minesto share (MINEST) is traded on the Nasdaq First North Stockholm stock exchange, with G&W Fondkommission as Certified Adviser.

Read more about Minesto at www.minesto.com

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

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 08:45 CEST on 4 July, 2017.