Floating tidal turbine technology developer Orbital has secured new investment secured from the Scottish National Investment Bank and individuals via the Abundance Investment platform.
The funding will be used to finance the ongoing operation of the O2, the company’s 2MW-plus floating turbine.
Orbital said the debt facilities will be serviced by the long-term sale of electricity from the turbine, forecast at around 100 gigawatt-hours delivered to the UK grid or hydrogen electrolysers over its project life.
The first element of the funding is a £4m investment from the Scottish National Investment Bank.
The second element is a £4m 12-year debenture offer which has been funded by over a thousand individual investors from Abundance Investment.
It helps to refinance a construction debenture raised through Abundance in 2019, which was the platform’s largest single raise of this type.
Orbital Marine Power chief executive Andrew Scott 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.
“Tidal stream energy has a vital role to play in delivering clean, predictable energy as a complementary part of the broader clean energy transition.
“Following today’s announcement, Orbital is well-placed to continue developing further projects, benefiting our wide-reaching UK supply chain.”
Scottish National Investment Bank executive director Mark Munro said: “The Bank’s investment in Orbital aligns with our mission to support home-grown innovation and the just energy transition.
“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 to benefit Scotland more broadly.”
Abundance Investment joint managing director Bruce Davis said: “Our investors are proud to have mobilised their money to support Orbital Marine Power in their quest to make tidal stream energy a key pillar of the UK energy sustainability and security.
“From its origins as a world beating record crowdfunding investment we look forward to helping to finance a future world beating industry.”