Siemens dives deeper into tidal energy with MCT deal

Article taken from businessgreen.com. Click here for the original article.

German engineering giant Siemens has stepped up its support for the UK's fledgling tidal energy market, after increasing its minority stake in Marine Current Turbines (MCT).

Tidal technology developer MCT today confirmed Siemens has increased its stake in the company to 45 per cent, up from the 10 per cent it acquired in February 2010.

The news comes weeks after the UK and Scottish governments announced plans to increase the financial support for tidal energy generators through the Renewable Obligation Certificate subsidy scheme.

Scotland also recently unveiled an £18m fund to help commercialise the country's first commercial wave and tidal power arrays.

Dr Andrew Tyler, chief executive of MCT, said he hoped Siemens' investment and  the extra government support would help secure funding for its first two tidal arrays.

MCT is expected to start seeking finance within the next month to build the 8MW Kyle Rhea project in Scotland and 10MW Anglesey Skerries project in Wales.

"Through the expansion of the partnership with Siemens, we have further strengthened our position in the tidal energy market. We have the increased backing of a major industrial player, which is essential to support the commercialisation of our proven technology," he said.

"Siemens' increased investment, as well as UK government support, should give investors the confidence that we have the necessary backing to deliver these crucial projects and the ones to follow."

Siemens last month split its renewables business into two separate units - wind power, and solar and hydro.

MCT is also planning to deploy a tidal system into the FORCE facility in Canada's Bay of Fundy, and has an approval for a lease from the Crown Estate to deploy a 100MW tidal farm off Brough Ness, on the southern most tip of the Orkney Islands in Scotland.

Michael Axmann, chief financial officer of the newly founded solar and hydro division, said the increased stake would strengthen its activities in ocean power generation.

"We will actively shape the commercialisation process of innovative marine current power plants," he said.

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