Aquamarine Power has gone into administration due to a lack of private sector backing to supplement public funding support.
The Edinburgh-based company, which developed the Oyster wave power concept, says it has called in administrators to manage the business and to seek a sale or investment via the administration process.
BDO LLP business restructuring partners James Stephen and Graham Newton have been appointed Joint Administrators and will now take over the running of the Edinburgh firm.
The wave energy developers have been testing their full-scale Oyster wave energy machines at the European Marine Energy Centre (EMEC) in Orkney. The concept itself is a buoyant, hinged flap that is attached to the seabed approximately half a kilometre from the shore. Movement of the flap pushes high-pressure water to drive an onshore hydroelectric turbine.
Paddy O’Kane, Aquamarine Power’s CEO said: “Oyster is the only wave technology to have proven it can operate in all ocean conditions and we have superb understanding of how well Oyster captures energy at sea.
“However, today’s news underscores the financial as well as technical challenge in bringing an entirely new form of energy generation to commercialisation. New private sector funding is required now to deliver our technology roadmap.”
The Joint Administrators will continue to trade the company with a view to effecting a sale as a going concern. All 14 employees are being retained.
James Stephen, BDO business restructuring partner said: “Whilst the company has seen many successes over the last few months, including securing a €800,000 grant from the EU as well as a £2m contract from Wave Energy Scotland, the economic climate has significantly affected the business.
“The lack of private sector backing to supplement public funding support placed the company under cash flow strain and the directors concluded the best prospect of concluding a transaction was via the protection of administration. The company holds liquid funds which will allow this strategy to be pursued.”