GREEN Ocean Energy will not be the last marine power company to fail, an industry analyst has warned.
Andrew Reid, managing director of energy consultant Douglas-Westwood in Aberdeen, said the wave and tidal sector of the renewables industry had a bright future, but it would only be enjoyed by a select few companies. Mr Reid said the marine market was at a very early stage, and while there had been investment in technology and several licensing awards many concepts and technologies would fail to reach the commercial stage.
He said: “There is probably between 60 and 80 concepts out there for wave and tidal devices, but the reality is not all of them can survive; there is probably only room for around five. The reason there has been so many marine technologies up to this point is because there has been a lot of funding and initial investment to get the market going, but that will begin to tail off.”
Mr Reid said, however, that as the number of failed companies increased, the remaining marine energy firms would be stronger and more robust.
He added: “There are great prospects and opportunities for those who do survive and take their technology to the commercial stage. In reality, Green Energy will be one of many firms with great concepts which falter, but the successful companies will be good for Scotland and for the north-east. Wave and tidal power is an area where we can create expertise in our own back yard and take it across the world.”
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