Renewable energy in the far north is expected to be one of the main beneficiaries of a development fund.
First Minister Alex Salmond unveiled a £35million programme to support the production of new offshore wind technology yesterday.
It also emerged that Aquamarine Power, developer of the Oyster wave energy machine, had secured £7million, as well as a commitment of further investment from shareholders over the next two years.
Mr Salmond announced the investments as he opened the second Scottish Low Carbon Investment conference in Edinburgh. Nobel Peace Prize-winner and former US vice-president Al Gore is among the international speakers at the two-day event.
The £35million Prototype Offshore Wind Energy Renewables Support (Powers) fund, administered by Scottish Enterprise, will take applications from across Scotland until March 2013. It is hoped it will lever in a further £80million in private investment to bring the production of full-scale prototypes to Scottish sites.
Highlands and Islands Enterprise chief executive Alex Paterson said: “We welcome the announcement of the Powers development fund as an additional support which will help us move forward and build on the many assets we already possess across the Highlands and Islands.
“Scotland is a great place for all types of renewable energy, with an established and growing supply chain, good infrastructure bases and an abundance of natural resources.”
Mr Salmond told delegates that investors could look to the Scottish Government to provide certainty and leadership.
“We are determined to remain among the most attractive locations for manufacturing, including the prototype testing that follows the research and development phase,” he said.
“That is why I am announcing a new £35million fund to support production of full-scale prototypes of the next-generation offshore wind turbines that will power the renewables revolution, deliver our 2020 vision and reindustrialise Scotland.”
Mr Salmond also announced that Aquamarine Power had closed a £7million funding round, comprising £3million each from existing shareholders SSE Venture Capital and ABB, and £1million from Scottish Enterprise via the Scottish Investment Bank.
The shareholders are also working to develop a further funding package of £18million to build their first commercial wave farm by 2014.
Aquamarine Power executive Martin McAdam said: “This new investment and further financial commitment from our existing shareholders is another tremendous vote of confidence in Aquamarine Power’s Oyster technology, our team and the global market potential of nearshore wave energy.
“We are still seeking new shareholders who can bring additional finance and technical expertise to our business by investing alongside our existing shareholders in future rounds.
“However, this level of commitment frees us up to concentrate fully on the challenge of deploying Oyster technology to produce cost-effective, reliable, clean energy from the sea.”
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