AN ABERDEEN-BASED marine-energy developer which was designing renewable technology to power offshore installations has gone under.
Green Ocean Energy hoped its Wave Treader device would replace diesel generators as the primary source of power on both manned and unmanned units, but it emerged yesterday that the company had gone into liquidation.
The business had targeted 2015 for the first commercial installation of Wave Treader but liquidator Ewen Alexander of accountant Ritson Smith said Green Ocean had run out of funding.
He said: “Part of the challenge of developing new technologies is the technical aspect, but there is also the ongoing financial challenge of funding the concept.
“The directors felt they could not allow the company to continue and decided they had no alternative but to pass a winding-up order.”
Mr Alexander said running out of cash was not uncommon for small technology companies.
“Unfortunately Green Ocean is not the first company to be faced with these problems, and they will not be the last,” he said.
“It is not symptomatic of technology development in the UK – there are many companies which have an idea and the funding to make it commercially viable – but cases like this are not uncommon.”
A creditors’ meeting will be held in Ritson Smith’s Aberdeen offices on Wednesday, October 12.
Mr Alexander would not reveal the level of debt Green Ocean had when it collapsed, but it is understood to be a six-figure sum.
He said the company had few assets beyond the Wave Treader concept, adding: “The company has developed some intellectual property (IP) and it is up to the liquidator to realise any value in that.
“If there are other companies in a similar line of business who want to acquire the IP, then they can buy it and take it forward.”
Green Ocean, which employed five people, was set up by chief technology officer and the inventor of Wave Treader, George Smith, in 2005. Chief executive Graeme Bell joined the company two years later.
It had already tested scale models of its technology and planned to put a prototype through its paces next year.
Earlier this year, Green Ocean was the first renewable-energy company to receive funding from ITF, the industry technology facilitator for the international oil and gas industry.
ITF gave Green Ocean £45,000 to carry out an assessment of demand and suitability for Wave Treader for oil and gas platforms.
The technology was also intended to be used at the base of wind turbines.
Last night Neil Poxon, managing director of ITF, said the feasibility study had been put on hold. He said: “All project participants have been advised and we await further updates on Green Ocean Energy’s position and sincerely hope a resolution can be found to enable the completion of the project.”
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