NEW Orbital has been awarded two contracts for difference (CfDs) in the UK’s Allocation Round 4. They will underpin the delivery of multi-turbine projects in Eday, Orkney capable of delivering 7.2MW to the grid.
Orbital said it would now make make a “transformative investment” in its UK supply chain, with around 150 jobs expected to be created through the manufacture and installation phase.
Andrew Scott, CEO of Orbital Marine Power, said: “Securing these CfDs is the first step; with successful delivery against the AR4 commitments now the true measure of success…
“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 Marine Power has secured funding for the ongoing operation of the O2, the company’s 2MW+ floating turbine.
The debt funding, from the Scottish National Investment Bank and individuals via the Abundance Investment platform, will be serviced by the long-term sale of electricity from the turbine delivered to the UK grid or hydrogen electrolysers, forecast at around 100GWh over the project life.
The Scottish National Investment Bank has provided funding of £4 million. A similar amount came from a 12-year debenture offer, funded by over a thousand individual investors via Abundance Investment.
The finding will help refinance a construction debenture raised through Abundance in 2019, which was the platform’s largest single raise of this type.
In late 2021, Orbital secured equity investment from technology provider TechnipFMC.
Andrew Scott, CEO of Orbital Marine Power, said: “Completing operational finance for the first O2 is a significant moment for Orbital. Closing this funding demonstrates strong institutional and public support for the company, our proven technology and our pioneering approach to tidal stream power.”
Mark Munro, Executive Director, Scottish National Investment Bank, said: “The company’s unique and scalable approach to tidal stream energy has an important role to play in the journey towards net zero, and its focus on a domestic supply chain and strong Orkney heritage also has significant potential