QED Naval, a pioneer in tidal stream energy, is celebrating the award of funding through the government’s AR5 programme today, with the potential to generate £30m GVA over the next three years.
The Edinburgh-based renewable energy company, through its Welsh subsidiary Mor Energy, has been approved for 4.5MW, enough to power over 2,500 homes, at its Morlais site in North Wales, at a strike price of £198/MWh.
The agreement represents 100 per cent of the funding applied for under the CfD (Contracts for Difference) scheme.
Jeremy Smith, CEO of QED Naval, says: “We are delighted with this news and I would like to thank all our shareholders who have backed our ambitious vision and disruptive tidal technology. This is a huge vote of confidence in the tidal stream energy sector and will allow us to move forward with our plans to develop the infrastructure and create skilled jobs in the supply chain.
“With a global tidal energy market of £76 billion, and a predicted GVA of £1.4bn by 2030, supporting some 4,000 jobs, the UK has the chance to truly become the frontrunner of the ocean energy market globally.”
QED Naval developed its Subhub tidal platform to make it quicker and easier to install tidal energy systems.
Subhub has been shown to cut the costs of deploying and maintaining tidal stream turbines by up to 60% and improve yields by up to 48%.
Jeremy Smith adds: “In the UK alone we have 50% of the EU’s tidal stream energy potential and enough energy to supply at least 11% of the UK’s current demand.
“The revenue support announced today by the UK Government means that tidal energy can take its rightful place in the UK’s mainstream electricity supply – but for progress to be sustained it requires a clear policy framework, with continued ringfenced allowances.”
QED Naval’s Morlais development is situated off the northwest coast of Holy Island and will have the capacity to power over 180,000 homes once fully operational.
