Scottish-based renewable energy specialist Wavegen has secured a major funding boost for its wave power generation technology.
In conjunction with Ernst &Young, the company secured the required US$7.2M funding for the further development and commercialisation of its wave power technology. This round of finance was led by Merrill Lynch New Energy Technology and includes further backing from existing shareholders, including Unotec Holding AG, AGIP Oil & Gas Limited and 3i.
Wavegen’s marine power generation technologies take advantage of the vast natural energy potential found in the waves of the world’s oceans. Last December, a demonstration Limpet plant was commissioned on the island of Islay and currently generates power under a 15-year power purchase contract with Scottish & Southern Energy and Scottish Power. This latest fundraising will allow the company to accelerate the development of its products.
Allan Thomson, Wavegen’s managing director, said: ‘We are pleased that government and capital markets now understand the important role this vast untapped resource will play in the future energy supply mix. Merrill Lynch has recognised that we have the technology and team to deliver that promise.’