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LEADING WESLH TIDAL PROJECT ANNOUNCES NEW DEAL WITH MAJOR ENERGY SUPPLIER

Tidal Energy Ltd, the developer of DeltaStream, Wales’ first full-scale tidal power generator, has today announced an important deal with EDF Energy, marking a significant milestone in the commercial development of tidal power in the UK.

21.09.14
LEADING WESLH TIDAL PROJECT ANNOUNCES NEW DEAL WITH MAJOR ENERGY SUPPLIER

Tidal Energy Ltd Press Release

25 September 2014

 

DeltaStream will be amongst the world’s first grid-connected demonstration devices to generate green, sustainable and predictable tidal power.

The device, developed by tidal stream technology company Tidal Energy Ltd (TEL), was unveiled in August at Pembroke Port by The First Minister of Wales, the Rt. Hon. Carwyn Jones AM.

It will be installed in Ramsey Sound, Pembrokeshire, and is expected to begin generating electricity for Welsh homes shortly afterwards.

The Power Purchase Agreement (PPA) announced today guarantees that EDF Energy, the UK’s largest producer of low carbon electricity, will purchase electricity and renewable certificates from the device for the first year of the project at a pre-agreed price, ensuring that it will be able to generate revenue for its owners, TEL, from both the electricity market and the Government’s Renewables Obligation scheme.

The Government has earmarked tidal power as a priority technology, allocating a subsidy of 5 ‘ROCs’ for each unit of electricity generated, in order to fast-track its commercial development.

Power Purchase Agreements not only provide certainty of income for projects such as DeltaStream, but also provide a clear and useful benchmark of revenue for future investors and lenders. As such, the value of the contract to the DeltaStream project will extend well beyond its first year.

Martin Murphy, Managing Director of TEL, comments:

“DeltaStream is not just about proving a new, innovative technology – it is about proving that tidal power can make a real and lasting contribution towards the UK’s renewable energy targets and energy security. Taking the first steps to commercialisation, by securing a buyer for the electricity generated, is essential to that. We are proud that this cutting-edge project is, once-again breaking new ground, and ensuring Wales is playing a central role in the race to develop the UK’s significant tidal resources.”

Chris Williams, Development Director at TEL, adds:

“The ability of any project to generate revenue is obviously key to its long-term commercial success. This contract will mean that DeltaStream will have guarantees around what price it will receive for the electricity it sells to the market. At the same time, the PPA represents the beginning of a long term relationship with EDF Energy who we are delighted to be working with.”



Dan Brimelow, Export Sales and Procurement Manager at EDF Energy, said:

“The UK needs electricity generation from a range of low carbon sources. Technologies like tidal power help improve the diversity of electricity supplies and reduce our reliance on imported energy which is good for the country’s future energy security.

“By taking the time to understand Tidal Energy’s plans, we structured a PPA that gives them the income certainty they need to satisfy investors, and also manages the risks around forecasting how much power they would produce.”

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Notes to Editors

For more information or to request an interview, please contact:
 
Caroline Podsiad: Caroline.Podsiad@fticonsulting.com / +44 (0)20 3727 1424 

Stephanie Blott: Stephanie.Blott@fticonsulting.com / (0)203 727 1529



About Tidal Energy Ltd

Tidal Energy Limited (TEL) is a privately owned company with a number of independent shareholders. It was set up in Wales by a team of marine engineering and renewable energy experts.

The main funder and driving force behind TEL is Eco2 Ltd and its shareholders. Eco2 Ltd is Wales’ leading renewable energy company and is also based in Cardiff.

For more information on existing patents and our other partners, please visit – www.tidalenergyltd.com

About DeltaStream funding

Tidal Energy Ltd is backed by independent renewable energy company Eco2 Ltd, which has also developed projects in biomass, onshore wind and landfill gas.

TEL has received support from the European Regional Development Fund (ERDF) through the Welsh Government, the Carbon Trust and Carbon Connections UK Ltd. The Company’s research partnership with Cranfield University has played a vital role in the design and development of DeltaStream.

About DeltaStream design

The key design features include:

• A triangular gravity foundation which provides an important alternative to existing ‘piling’ methods for stability of the device on the seabed. This is the key to reducing the high installation and maintenance costs traditionally associated with marine renewable technology.

• The patented turbine blade design provides exceptional performance characteristics

• The DeltaStream solution, with up to 3 turbines on a single structure provides a high average output power

About DeltaStream Patents

DeltaStream’s intellectual property is protected by four patents, granted in multiple jurisdictions:

1. Thrust Control Patent:
This has been granted in the UK (2011), New Zealand (2013) and is grant pending in Australia, Canada, China, Korea, Europe & the USA.

2. Tidal Flow Structure Patent:
This has been granted in the UK (2012), Europe (2011), France (2012), Germany (2012), Ireland (2012), New Zealand (2013) & the USA (2013), and is grant pending in Canada.

3. Rock Foot Patent
TEL’s ‘Rock Foot’ Patent was filed in Europe, the USA & Canada in 2013.

4. Predictive Control Patent
TEL’s ‘Predictive Control’ Patent was filed in 2010 and is grant pending in the UK, Australia, Canada, China, Europe, Korea, New Zealand and the USA.

• DeltaStream is the first private marine project to be fully developed in Wales, having secured all the required planning and environmental consents together with a lease agreement from The Crown Estate. The company has also worked with contractors to install the necessary infrastructure to support what will be the first grid-connected freestanding tidal turbine.

• Unlike other tidal designs currently being developed, the multiple patented DeltaStream device combines an innovative freestanding triangular base design with a state-of-the-art hydraulics system, which ensures the turbine freely turns to capture the best tidal flow and maximise power generation. The gravitational pull anchors the device in place, eliminating the need for costly drilling into the seabed and ensuring low installation and maintenance costs relative to the electricity it generates.