Tuesday, May 30, 2023

Orbital Marine Power awarded two CfDs as part of UK Government renewable energy auction

UK supply chain investment and cost reduction pathway unlocked as company looks to positive future

Orbital, the renewable energy company focused on the development and global deployment of its pioneering floating tidal stream turbine technology, has been awarded two contracts for difference (CfDs) in the UK Allocation Round 4 (AR4) process.

This is a significant milestone in the company’s growth, with these CfDs underpinning the delivery of multi-turbine projects in Eday, Orkney.

Capable of delivering 7.2MW of predictable clean energy to the grid once completed, these Orbital tidal stream energy projects can power to up to 7,200 homes, supporting the UK’s security of supply, energy transition and broader climate change objectives.

This positive outcome also means Orbital can make a transformative investment in its UK supply chain, with around 150 jobs expected to be created through the manufacture and installation phase alone. On a jobs per MW installed basis, this would represent an unprecedented level of UK role creation for the construction phase of a renewable energy project.

Andrew Scott, CEO of Orbital Marine Power, said: “This award is an important validation of our pioneering technology and overall approach to-date. Securing these CfDs is the first step; with successful delivery against the AR4 commitments now the true measure of success. We will now build on our track record for financing pioneering projects – as evidenced by the O2 – continuing to offer investors the opportunity to scale up a predictable and reliable new source of clean energy. This journey will ultimately also reduce costs and increase jobs across our UK supply chain.

“The UK government’s courageous decision to create a tidal ringfence within the AR4 process was essential in getting us to this point. For industry-wide progress to be sustained, it is now vital that a long-term vision is created by Government, along with similar ringfence allowance in future allocation rounds. We already have further shovel-ready capacity, and we are investing in the development of new sites to ensure that Orbital can deliver additional commercial projects across the nations of the UK.”

Orbital is collaborating with TechnipFMC – a leading technology provider in the traditional and new energies industries with a track record of delivering large-scale fully integrated offshore projects, products and service – to accelerate the global commercialisation of its tidal stream solution.

About Orbital Marine Power Ltd.

Orbital Marine Power (Orbital) is a visionary, Scotland-based, renewable energy company focused on the development and global application of its pioneering floating turbine technology.

The culmination of over 15 years of refinement has resulted in the world’s most powerful and advanced tidal stream turbine, the O2, which has been exporting low carbon electricity to the UK grid since July 2021. The O2 is a 2MW+ product capable of being deployed in multi-unit arrays to provide utility-scale, clean energy with almost zero visual impact.

Orbital’s innovative, approach de-risks the commercial extraction of low carbon energy from fast flowing currents by offering low manufacturing and installation costs as well as the ability to carry out inexpensive, quick servicing on all major turbine components through a proprietary structural configuration.

Orbital has an established portfolio of further multi-MW tidal stream projects, focused initially within UK waters, built on a global pipeline of multi-GW opportunities.

More information about Orbital can be found here: www.orbitalmarine.com

The inspiring story of the O2, from concept to power generation, in under two minutes can be viewed here.

About the O2

  • 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.
  • Orbital’s floating technology captures the strongest tidal and river currents, guaranteeing higher yield. These exist close to the surface, rather than at the seabed.

About the Orbital Marine Eday Project

  • The Orbital Marine Eday Project is located in Orkney, at the European Marine Energy Centre Fall of Warness site, off the Island of Eday.
  • The CfD awarded turbines will deliver 7.2MW. Combined with the O2 deployment at the same location, this Orbital Marine Eday Project array will provide a total project installed capacity of 9.2MW, consisting of 4 Orbital devices.
  • The Orbital Marine Eday Project is the worlds most developed and largest floating tidal turbine array.
  • The project is contracted for delivery year 2026/2027.
  • Once operational the project will be connected to the UK grid and will power 7,200 UK homes with clean predictable energy.
  • Orbital is targeting financial close of the project by early 2024.

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