PRESS RELEASE: Abundance closes largest investment to date for Orbital Marine Power, raising £7 million for world’s most powerful tidal stream turbine
- Orbital Marine Power (Orkney) will fund construction of the UK’s first floating tidal stream turbine to go into commercial production.
- c2,300 individual investors invested an average of c£3,000, with over half investing via their ISAs for a tax-free return.
- Particularly strong support from investors in Scotland, investing the highest average amount at £4,500 each.
- Full £7 million target achieved on January 1st.
The UK’s leading peer-to-peer ethical investment company Abundance has closed its largest fund raise to date, raising £7 million for innovative Scottish tidal energy company Orbital Marine Power (Orkney).
Orbital Marine Power (formerly Scotrenewables Tidal Power) will use the funds raised to build its first production model Orbital O2 2MW turbine, an innovative floating tidal turbine platform that can be towed, installed and easily maintained. The project already has secured a number of supporting grants as well as equity funding, including from the Scottish Government.
The Abundance offer of 2.5-year debentures with an annual return of 12% attracted 2,278 individual investors, with over half investing via an Innovative Finance ISA for a tax-free return. The average investment was approximately £3,000, with the project attracting particularly strong interest from investors in Scotland who put in 50% more on average, at £4,500.
Bruce Davis, co-founder and joint Managing Director, Abundance, said: “2019 promises to be the best year yet for the environmental and social investment sector, and it feels significant that our largest investment to date reached its £7 million target on New Year’s Day. The UK can rightly claim to be a world leader in tidal generation technology and our customers have backed it enthusiastically.”
With this new investment, Orbital Marine Power plans to build its Orbital O2 2MW turbine over the next 12 months, for deployment at Orkney’s European Marine Energy Centre (EMEC) during 2020. The Orbital O2 turbine comprises a 73m-long floating superstructure, supporting two 1MW turbines on either side. The new turbine will draw upon the success of Orbital’s SR2000 turbine which was launched in 2016 and produced in excess of 3GWh of electricity over its initial 12-month test programme at EMEC.
Orbital’s floating turbine simplifies installation and maintenance as risky underwater operations can be avoided, keeping costs and downtime low, while floating systems can be deployed over a wide range of tidal sites in UK and global waters.
Andrew Scott, CEO, Orbital Marine Power, said: “We are delighted with this funding result; it’s a terrific endorsement of our technology and a clear signal that the UK public is hugely supportive of seeing tidal energy brought into the domestic and global energy mixes. The whole team at Orbital Marine are excited to be moving forwards with this flagship project and deliver the first O2 unit for costs similar to offshore wind and so provide the basis for a new and sustainable industry. This a journey we are now honoured to be taking with thousands of new investors, thanks to Abundance.”
Orbital O2 2MW
Notes to Editor:
For Orbital Marine Power:
About Abundance Investment
Abundance is a leading direct investment platform that is putting people in control of their money. People invest in individual projects that generate something good for the environment and society as well as bank-beating returns.
The investor chooses which project or business to invest in from just £5 and benefits from a financial return, while the world benefits from the growth of sustainable businesses.
Since launching in 2012, more than 5500 people have invested over £85m directly into the projects they support via the Abundance platform, with over £18m returned to investors. In the process, Abundance has achieved a number of firsts. As well as being the world’s first FCA-regulated peer-to-peer investment company, it is also the first investment platform to offer a dedicated peer-to-peer investment SIPP and launched the UK’s first innovative finance ISA for renewable energy investments on November 1st 2016.
About Orbital Marine Power
- Orbital Marine Power Ltd (formerly named Scotrenewables Tidal Power Ltd) is an innovative Scottish engineering company focused on the development of a tidal energy turbine technology with the potential to produce a step-change reduction in the cost of energy from tidal currents. The company’s novel floating technology offers a low cost solution for simplified and safe manufacture, installation, access and maintenance along with the ability to use low cost, small workboats for all offshore operations. The company currently employs 24 staff with offices in Orkney and Edinburgh.
- Orbital Marine Power (Orkney) plc is a wholly owned subsidiary of Orbital Marine Power Ltd.
- The Orbital Marine technology has been under continuous engineering development, including rigorous testing of scaled systems in both tank conditions and open ocean environments, since the company was founded in Orkney in 2002.
- In 2016 the company launched the SR2000, the world’s most powerful tidal stream turbine. The SR2000 produced in excess of 3GWh of electricity over its initial 12 month test programme.
- The Orbital O2 is also being supported by grant funding from the EU Horizon2020 FloTEC: Floating Tidal Energy Commercialisation project, Interreg NWE Integrating Tidal Energy Generation (ITEG) and the OCEANERA-NET COFUND.
Go to www.orbitalmarine.com
An animation of the Orbital O2 2MW is available to view here: https://youtu.be/9hN3dBpPu8Q
Abundance and Abundance Investment are trading names of Abundance Investment Ltd which is authorised and regulated by the Financial Conduct Authority (no. 525432).
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