RCS - Orbital Marine Power - Orbital Marine awarded two CFDs in AR4 round
07/07/2022 08:15
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RNS Number : 6553R Orbital Marine Power Ltd 07 July 2022
07 July 2022
Orbital Marine Power Ltd
("Orbital" or the "company")
Orbital Marine Power awarded two CfDs as part of UK Government renewable
energy auction
UK supply chain investment and cost reduction pathway unlocked as company
looks to positive future
Orbital, the renewable energy company focused on the development and global
deployment of its pioneering floating tidal stream turbine technology, has
been awarded two contracts for difference (CfDs) in the UK Allocation Round 4
(AR4) process.
This is a significant milestone in the company's growth, with these CfDs
underpinning the delivery of multi-turbine projects in Eday, Orkney.
Capable of delivering 7.2MW of predictable clean energy to the grid once
completed, these Orbital tidal stream energy projects can power to up to 7,200
homes, supporting the UK's security of supply, energy transition and broader
climate change objectives.
This positive outcome also means Orbital can make a transformative investment
in its UK supply chain, with around 150 jobs expected to be created through
the manufacture and installation phase alone. On a jobs per MW installed
basis, this would represent an unprecedented level of UK role creation for the
construction phase of a renewable energy project.
Andrew Scott, CEO of Orbital Marine Power, said: "This award is an important
validation of our pioneering technology and overall approach to-date. Securing
these CfDs is the first step; with successful delivery against the AR4
commitments now the true measure of success. We will now build on our track
record for financing pioneering projects - as evidenced by the O2 - continuing
to offer investors the opportunity to scale up a predictable and reliable new
source of clean energy. This journey will ultimately also reduce costs and
increase jobs across our UK supply chain.
"The UK government's courageous decision to create a tidal ringfence within
the AR4 process was essential in getting us to this point. For industry-wide
progress to be sustained, it is now vital that a long-term vision is created
by Government, along with similar ringfence allowance in future allocation
rounds. We already have further shovel-ready capacity, and we are investing in
the development of new sites to ensure that Orbital can deliver additional
commercial projects across the nations of the UK."
Orbital is collaborating with TechnipFMC - a leading technology provider in
the traditional and new energies industries with a track record of delivering
large-scale fully integrated offshore projects, products and service - to
accelerate the global commercialisation of its tidal stream solution.
Ends
About Orbital Marine Power Ltd.
Orbital Marine Power (Orbital) is a visionary, Scotland-based, renewable
energy company focused on the development and global application of its
pioneering floating turbine technology.
The culmination of over 15 years of refinement has resulted in the world's
most powerful and advanced tidal stream turbine, the O2, which has been
exporting low carbon electricity to the UK grid since July 2021. The O2 is a
2MW+ product capable of being deployed in multi-unit arrays to provide
utility-scale, clean energy with almost zero visual impact.
Orbital's innovative, approach de-risks the commercial extraction of low
carbon energy from fast flowing currents by offering low manufacturing and
installation costs as well as the ability to carry out inexpensive, quick
servicing on all major turbine components through a proprietary structural
configuration.
Orbital has an established portfolio of further multi-MW tidal stream
projects, focused initially within UK waters, built on a global pipeline of
multi-GW opportunities.
More information about Orbital can be found here: www.orbitalmarine.com
(http://www.orbitalmarine.com)
The inspiring story of the O2, from concept to power generation, in under two
minutes can be viewed here (https://www.youtube.com/watch?v=WolGiKMpFh8) .
About the O2
· The O2 is the world's most powerful tidal turbine, able to generate
2MW+
· It was launched in 2021, as the first vessel to be launched from a
Dundee yard in 40 years
· Its estimated CAPEX expenditure in the UK supply chain is around 80%,
with around 60 full time equivalent roles created through build,
· The O2 has been operational since July 2021 and exporting electricity
to Orkney grid is expected to offset around 2,000 tonnes of CO2 per year, and
power 1,700 UK homes while creating high value jobs within the local economy
over the course of its operational life.
· Orbital's floating technology captures the strongest tidal and river
currents, guaranteeing higher yield. These exist close to the surface, rather
than at the seabed.
About the Orbital Marine Eday Project
· The Orbital Marine Eday Project is located in Orkney, at the European
Marine Energy Centre Fall of Warness site, off the Island of Eday.
· The CfD awarded turbines will deliver 7.2MW. Combined with the O2
deployment at the same location, this Orbital Marine Eday Project array will
provide a total project installed capacity of 9.2MW, consisting of 4 Orbital
devices.
· The Orbital Marine Eday Project is the worlds most developed and
largest floating tidal turbine array.
· The project is contracted for delivery year 2026/2027.
· Once operational the project will be connected to the UK grid and
will power 7,200 UK homes with clean predictable energy.
· Orbital is targeting financial close of the project by early 2024.
Media contacts at Orbital Marine Power:
Sarah Watt, Marketing & Media Manager: s.watt@orbitalmarine.com
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