Tidal wave energy company goes public
AS PANAMA seeks to find was to reduce its dependency on hydroelectric projects and fossil fuels for its growing electricity demands, a Swedish company devoted to generating energy from tidal waves is going public to make its system commercially available to the world.
Marine energy company Minesto has decided to apply for listing of the companys shares on First North at NASDAQ Stockholm and conduct a new issue of units of approximately10 million Euros.
Minesto’s tidal power plant, Deep Green generates electricity from tidal and ocean currents. Since 2006 the company has invested more than 20 million Euros in the development of the unique and patented technology. Deep Green has been producing electricity off the coast of Northern Ireland for more than two years, and is the only proven marine power plant that operates efficiently in areas with low velocity currents. Minesto intends to use the net proceeds of the placing to fund the company to a commercial phase.
Slow tidal and ocean currents are easier to operate in than fast currents, slow currents are also more often located close to existing power grids. Energy from ocean currents will be an important part of the emerging sustainable energy mix, since it has several advantages compared to other renewable energy sources, such as wind and solar power says a company statement.
Energy produced from slow tidal and ocean currents is predictable and unchangeable requires no expensive land areas and the plants are not visible or affect the surrounding environment
The global energy transition from fossil and nuclear energy to renewable energy options, is accelerating dramatically, and security of supply is highly prioritized on the political agenda. This has encouraged investors like the Rockefeller Brothers Fund, The Norwegian Oil Fund and the Fourth AP Fund, to divest from fossil companies and invest in renewable alternatives.
“During last year, Minesto succeeded with its plan to secure an agreement for the first tidal park, ensuring investments of 16.5 million Euros from the Wales Government and KIC InnoEnergy, secure network capacity for our project in Wales, and created the organisation we need to take the next step toward a large-scale electricity generation,” said Anders Jansson, CEO, Minesto.
“This combined with the increased global interest in our products, the board and the management has decided that a listing is the next step in the development of the company.”
The funds from the issue, will be used to finance the commercialisation of the Deep Green. The first day of trading is scheduled for November 9 provided that Minesto’s application for listing is approved.
The Swedish company is now prepared to become one the first companies in the world to build a commercial marine power plant array.
In conjunction with the unit issue to the public, an additional unit issue is conducted up to 10,8 million Euros, directed towards European institutional investors.
