The Scottish National Investment Bank is investing £4million in Orbital’s floating turbine, O2.
In addition to the Scottish National Investment Bank, individuals via the Abundance Investment platform will also contribute finance to the ongoing operation of the O2, the company’s 2MW+ floating turbine. These debt facilities will be serviced by the long-term sale of electricity from the turbine, forecast at around 100 gigawatt hours of clean predictable energy, delivered to the UK grid or hydrogen electrolysers over its project life.
The Scottish National Investment Bank is a public limited company. State Aid approval for the establishment and capitalisation of the bank was received from the European Commission in November 2020. The Scottish National Investment Bank is wholly owned by Scottish Ministers on behalf of the people of Scotland but is operationally and administratively independent of Government.
It’s core missions as approved by the Scottish Parliament are to support:
- the just transition to net zero emissions by 2045
- creating opportunities and reducing inequalities
- harnessing innovation in response to demographic challenges
Mark Munro, Executive Director, Scottish National Investment Bank, said:
“The Bank’s investment in Orbital aligns with our mission to support home-grown innovation and the just energy transition. The company’s unique and scalable approach to tidal stream energy has an important role to play in the journey towards net zero, and its focus on a domestic supply chain and strong Orkney heritage also has significant potential to benefit Scotland more broadly.”
The second element is a £4m 12-year debenture offer which has been funded by over a thousand individual investors from Abundance Investment.
Bruce Davis, Joint Managing Director, Abundance Investment, said:
“Our investors are proud to have mobilised their money to support Orbital Marine Power in their quest to make tidal stream energy a key pillar of the UK energy sustainability and security. From its origins as a world beating record crowdfunding investment we look forward to helping to finance a future world beating industry.”
In late 2021, Orbital secured equity investment from TechnipFMC, a leading technology provider to the traditional and new energy industries, with a proven track record of successfully delivering large-scale, fully integrated offshore energy projects to customers around the world.
- The O2 is the world’s most powerful tidal turbine, able to generate 2MW+
- It was launched in 2021, as the first vessel to be launched from a Dundee yard in 40 years
- Its estimated CAPEX expenditure in the UK supply chain is around 80%, with around 60 full time equivalent roles created through build,
- The O2 has been operational since July 2021 and exporting electricity to Orkney grid is expected to offset around 2,000 tonnes of CO2 per year, and power 1,700 UK homes while creating high value jobs within the local economy over the course of its operational life.
Andrew Scott, CEO of Orbital Marine Power, said:
“Completing operational finance for the first O2 is a significant moment for Orbital. Closing this funding demonstrates strong institutional and public support for the company, our proven technology and our pioneering approach to tidal stream power.
“Tidal stream energy has a vital role to play in delivering clean, predictable energy as a complementary part of the broader clean energy transition. Following today’s announcement, Orbital is well-placed to continue developing further projects, benefiting our wide-reaching UK supply chain.”
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