Latest developments in the marine energy sector in Wales show ongoing growth and a steady stream of opportunities - despite the Government’s recent decision not to support the £1.3 billion Swansea Bay tidal power lagoon project.

Pembrokeshire Coastal Forum (PCF) has just awarded a Marine Energy Test Area (META) wavebuoy deployment and data processing contract for two wave sites located off the Pembrokeshire Coast.

PCF requires support to obtain resource measurement which will provide key information for the development, use and operation of the wave sites. The successful bidder will be expected to provide access to live data, collated raw data and complete resource profile reports for a number of uses including:

• device design and engineering
• site review and location selection
• marketing and promotion of the site

The procurement is related to a project and/or programme financed by the EU European Regional Development Fund - META 81124. Currently €100.4million of EU funding is prioritised for marine energy in Wales over the next 5 years.

Glasgow-based Partrac Ltd has been awarded the contract, one of six companies who bid for the works package.

Additional funding for award-winning ocean energy firm Bombora

In a separate development, Bombora Wave Power has appointed Greenbackers Investment Capital to manage a new round of financing for the commercialisation of its globally patented wave energy converter, the mWave™.

Founded in 2012 in Perth Western Australia, the award-winning ocean energy company established its European operations in Pembrokeshire in November 2017.

The company was recently awarded £10.3 million of EU funds to support its 2½ year, £15 million, 1.5MW mWave™ demonstration project.

Greenbackers has been commissioned to assist in raising a further £6 million which will provide the balance of funds for the demonstration project and simultaneously launch the consenting of Bombora’s first commercial wave farm projects.

Designed to sit on the ocean floor, the mWave™ delivers low cost, low impact, renewable electricity for commercial use in island and national electricity grids. The mWave™ is robust, low maintenance and can be located close to the shore where wave energy is concentrated.

With offices in Glasgow, London and Cardiff, Greenbackers are specialists in cleantech growth company finance.

Sam Leighton, Bombora’s Managing Director said:

“Greenbackers have the experience and expertise in our specialised area of the energy sector and can help support us to deliver wave energy globally to complement todays renewable energy options.

Since opening our European operations in Wales in late 2017 and transferring our core team from Australia we have been delighted with the support from the Welsh Government and local industry. Our new base in the heart of this dynamic wave and tidal energy region offers excellent access to marine energy test areas, critical supply chain capability and marine operations expertise.”

Greenbackers’ Associate Partner, Andrew Smith, commented:

“We are very impressed with the mWave’s engineering simplicity and robust design. Bombora has been able to assemble an experienced multi-disciplinary engineering and management team, backed by funding from both the European Regional Development Fund and their major investor, Enzen Global Limited.”

Domestic and overseas markets market potentially worth £billions to UK economy

A recent report by the Offshore Renewable Energy (ORE) Catapult has predicted that with potential UK deployment of 100MW per year from 2021/22, and a realistic share of a growing global market, the tidal stream industry could generate a net cumulative benefit to the UK by 2030 of £1,400m, consisting of £1,600m GVA from the domestic market and £1,100m GVA from exports, offset by £1,300m of revenue support. This would also support a total of almost 4,000 jobs by 2030 and 14,500 by 2040.

Assuming a 10 year lag behind tidal stream, wave energy will also add a net positive contribution to the UK economy, worth a net cumulative benefit to the UK by 2040 of £4,000m, consisting of £1,500m GVA from the domestic market and £3,700m GVA from exports, offset by £1,200m of revenue support. This would also support a total of 8,100 jobs by 2040.

The report says:

“The UK’s tidal stream and wave energy industries are at a key juncture. The momentum created by significant UK public support between c.2004 and 2014 has now visibly slowed, with a knock-on impact on private sector investor confidence."

"Despite a number of high-profile failures, 22 tidal device developers and 23 wave device developers remain active in the UK, and we observe a major difference between the status of the tidal stream developers who are progressing first farm projects, and the wave sector which is, in the main, still in the technology development phase.”

The industry estimates it has invested around £508m of private capital in developing various marine energy technologies, together with receiving £70m in direct public support.

“This combined investment has enabled the UK to position itself as a world leader, both in marine energy systems and project development.” The report says.

Global market sees increased competition

The report says several countries stand out as key players in the global marine energy market, both as potential allies and competitors. There is also increasing evidence that UK companies or companies which have used the UK’s world-leading testing facilities are being attracted to these markets

Canada has five developers with berths at The Fundy Ocean Research Centre for Energy (FORCE) in Nova Scotia, receiving between CAN$385 and CAN$575 per MWh (Approx £220 and £330 per MWh). Canada is also conducting a large push for clean technology, and has recently announced a CAN$2bn Clean Technology Fund, and CAN$22bn planned investment in green infrastructure, including renewables, smart grids, reducing diesel use in remote communities and electric vehicle infrastructure.

Other countries actively building marine energy industries include, France which has intentions to hold a tidal energy tender round with attractive financial support. Japan, Chile, USA, Indonesia, South Korea, China, Netherlands, Portugal and Australia are also in the running. Many of the technology concepts have originated from the UK. The UK’s 23 tidal stream technology developers already referenced is currently rivalled only by the USA with 19, while there are growing numbers in France, Canada, Australia and Norway.

Marine energy needs policy support to keep UK in world leading position

However, the report warns:

“ UK companies remain at the forefront of marine energy technology development and could be well-placed to capitalise on this opportunity, but this is uncertain and under threat given the level of activity and support on offer in other countries.”

The UK is currently a world leader in the development of marine energy technologies but policy support is required to provide a market mechanism that enables commercial projects for both tidal stream and wave energy developers.

The report concludes:

“Given the size of the global opportunity, the investment required through policy support is relatively modest and outweighed by the GVA generated from domestic and global markets. This will create UK global advantage.

“The UK has the lead in a huge potential global marine energy market. Policy action will allow the UK to maintain this lead, and build the foundations for a global sustainable energy sector.”

Click here to read the ORE Catapult report TIDAL STREAM AND WAVE ENERGY COST REDUCTION AND INDUSTRIAL BENEFIT