Aquamarine has called in the administrators with a view to selling the wave developer as a going concern.
The board yesterday appointed BDO to take over the running of the Edinburgh company. All 14 employees are being retained and trading will continue during the transition.
“Wave energy company Aquamarine today called in administrators to manage the business and to seek a sale or investment via the administration process,” said the company.
BDO business restructuring partner James Stephen said the economic climate “has significantly affected the business”.
He added: “The lack of private sector backing to supplement public funding support placed the company under cash flow strain and the directors concluded the best prospect of concluding a transaction was via the protection of administration. The company holds liquid funds which will allow this strategy to be pursued.”
Stephen said BDO is in “continuing discussions with interested parties who were in discussions with the company prior to our appointment and are working closely with the Aquamarine Power board to engage with other potential purchasers. We welcome new enquiries.”
Aquamarine chief executive Paddy O’Kane said: “The team at Aquamarine Power has worked tirelessly over many years to design, build and demonstrate Oyster wave energy machines.
“However today’s news underscores the financial as well as technical challenge in bringing an entirely new form of energy generation to commercialisation. New private sector funding is required now to deliver our technology roadmap.”
Trade body Scottish Renewables said Aquamarine’s decision to call in the administrators is disappointing for both for the marine sector and for the wider renewables industry.
“Today’s announcement is another demonstration of just how challenging this sector can be, but we mustn’t lose sight of the fact we are now closer than ever to realising commercially viable wave energy, and the size of the prize remains undiminished,” said Scottish Renewables offshore policy manager Lindsay Roberts.
She added: “The hugely talented and experienced Aquamarine Power team have made an enormous contribution to the development of this industry and it is hoped that a viable way forward can be found for the business.”
RenewableUK deputy chief executive Maf Smith said: “The news adds weight to the case for action to support the development of wave energy, following similar announcements from other leading companies in the sector such as Pelamis.”
He added: “Although today’s announcement is a cause for concern, we welcome the fact that all of Aquamarine’s employees are being retained, and that the aim is to sell the company as a going concern, as the technology itself has repeatedly proved its worth in British waters.”
Image: the Oyster device off Orkney
