Client News-MARINE CURRENT TURBINES TO DEPLOY TIDAL FARM OFF ORKNEY AFTER SECURING SITE LEASE FROM THE CROWN ESTATE

MARINE CURRENT TURBINES TO DEPLOY TIDAL FARM OFF ORKNEY

AFTER SECURING SITE LEASE FROM THE CROWN ESTATE

Marine Current Turbines Ltd has secured approval for a lease from The Crown Estate to deploy its award-winning SeaGen tidal current technology off Brough Ness, on the southern most tip of the Orkney Islands (South Ronaldsay) and north east of John O’Groats. The company plans to have its first phase of SeaGen tidal turbines deployed during 2017 with the whole scheme operational by 2020.

Marine Current Turbines (MCT) is planning to install 66 SeaGen tidal turbines in three phases over a four year period in a site area of 4.3 square kilometres. The Brough Ness tidal array will have a total generating capacity of 99MW – enough power for nearly 100,000 homes.

SeaGen is the world-leading prototype tidal energy turbine designed and deployed by MCT. It is the largest grid-connected marine renewable energy system in the world and which last month exceeded 1000 hours of commercial operation in Northern Ireland’s Strangford Lough. It is the first tidal current energy system in the world to have achieved this milestone. The 1.2MW tidal current turbine, which was deployed in April 2008, has achieved a capacity factor of 66% and so far delivered more than 800MWh of electricity into the National Grid.

Martin Wright, Managing Director of Marine Current Turbines said: “The Pentland Firth and Orkney waters are strategically the most important marine energy areas in Western Europe so we are delighted to have secured approval for a lease by The Crown Estate. I believe that MCT is in a very strong position to capitalise on this significant and challenging opportunity. MCT already has the valuable experience of deploying and operating SeaGen in Northern Ireland’s Strangford Lough and within the next two to three years we expect to have deployed our first tidal farm in UK waters.”

Subject to financing and final agreements with The Crown Estate, Marine Current Turbines is aiming to secure planning and environment consents for Brough Ness by 2015, to start construction in 2016 and the first phase of deployment in 2017. The timing of construction and deployment will be dependent on the local grid infrastructure being strengthened.

Roger Bright CB, Chief Executive of The Crown Estate said: "I am delighted to announce that Marine Current Turbines has been awarded the Brough Ness site to develop 99MW of tidal energy power in Pentland Firth And Orkney Waters, the world’s first commercial wave and tidal leasing round.

"The 1.2GW of installed capacity proposed by the wave and tidal energy developers for 2020, shows the world that marine energy can produce meaningful amounts of electricity and offers a real alternative to conventional power production. The long term prospects for this growing industry are exceptionally bright, with vast amounts of untapped energy in the seas all around the UK. It will create new businesses and jobs as well as attracting inward investment.”

As with its SeaGen project in Northern Ireland, where local companies played a prominent part in delivering the scheme, Marine Current Turbines will look to companies in the Orkneys and Caithness & Sutherland to support its Brough Ness tidal project.

Martin Wright added: “We recognise that the local supply chain could provide us with valuable expertise, not least in marine and port services, and in engineering and fabrication. We are very keen to work with local companies and the local agencies so that they can share in this exciting opportunity.”

This latest news from MCT comes a day after Lord Hunt, the UK’s Energy Minister visited the company’s SeaGen project in Northern Ireland (March 15th), and follows Siemens Energy’s investment in Marine Current Turbines that was announced last month (February 25th 2010) and new investment in the company from the Carbon Trust, EDF Energy and other shareholders in December 2009 and February 2010. These two funding rounds totalled £8.5million.

In February 2010, Marine Current Turbines also received £2.7m from the UK Government’s Marine Renewables Proving Fund and administered by the Carbon Trust. This funding stream is being used to support the improvement of SeaGen’s operation and its future installation.

Notes to Editors:

1. Marine Current Turbines Ltd (www.marineturbines.com) is based in Bristol, England. The company was established in 2000 and its principal corporate shareholders include BankInvest, Carbon Trust Investments, EDF Energy, ESB International, Guernsey Electricity, High Tide and Siemens Energy.

2. In September 2009, MCT was ranked the world’s top tidal energy company in The Guardian/Clean Tech Global 100 Survey and in June 2009 won Renewable Energy Developer of the Year in the UK Renewable Energy Association Annual Awards.

3. MCT’s 1.2MW SeaGen was deployed in Northern Ireland’s Strangford Lough in April 2008; it has the capacity to generate power for the equivalent of about 1500 homes. It works in principle much like an “underwater windmill” with the rotors driven by the power of the tidal currents rather than the wind. The SeaGen turbine is subject to a rigorous monitoring programme imposed under its licensing conditions to ensure it does not threaten the marine life of Strangford Lough where it is located.

4. SeaGen is accredited by OFGEM as a UK power station and so is a recipient of Renewable Obligation Certificates (ROCs).

5. Since February 2008, MCT has partnered RWE npower renewables on plans to develop a 10MW tidal farm in waters off Anglesey, north Wales and is working with Minas Bay Pulp & Paper to deploy a single SeaGen system in Canada’s Bay of Fundy.

Client News-International business backing for leading UK tidal energy company

International business backing for leading UK tidal energy company

SIEMENS INVESTS IN MARINE CURRENT TURBINES

British tidal energy company, Marine Current Turbines Ltd, today announces that global engineering firm, Siemens, has invested in the firm alongside the Carbon Trust, High Tide and other private investors.

Following an investment round led by the Carbon Trust in 2009, this latest funding brings the total investment in Marine Current Turbines over the past two months to £8.5million. Investors in the first round included Bank Invest, Carbon Trust, EDF Energy and High Tide.

Lord Hunt, Minister of State for the UK Department of Energy and Climate Change welcomed the new £4.8million funding round saying “Our seas are a fantastic asset that can generate clean, green and home-grown power that will boost our transition to a low carbon economy. I’m pleased that more investors are coming forward to back Marine Current Turbines as they seek to harness the UK’s excellent tidal resources.”

The total funding will help Marine Current Turbines (MCT) in its plans to deploy the UK’s first commercial tidal energy farm in UK waters within the next two years. SeaGen, the company’s world-leading prototype commercial tidal energy turbine, has already exceeded 1,000 hours of operation in Northern Ireland’s Strangford Lough, a first for any marine energy device.

René Umlauft, CEO of the Renewable Energy Division of Siemens Energy said: “With this investment in an early stage company we’re securing access to an innovative technology in the field of renewables. As one of the technology leaders in ocean power, Marine Current Turbines is a suitable partner for us to enter the promising ocean power market.”

Martin Wright, Managing Director of Marine Current Turbines said: “Siemens’ investment in MCT underlines the significant commercial potential that exists for tidal energy across the globe, and enables us to draw upon the company’s extensive knowledge and experience in turbine generation technology. We are delighted to have Siemens on board. Siemens is a company with an outstanding international reputation and will help us develop our technology and deliver tidal energy on a commercial and global basis.”

Tom Delay, Chief Executive, Carbon Trust said: “This new deal represents a major vote of confidence in Britain’s marine energy industry. The UK must urgently diversify, decarbonise and secure its energy sources and marine energy could over time provide up to 20% of the UK’s electricity. Generating electricity from the UK’s powerful wave and tidal resource not only plays a crucial role in meeting our climate change targets but also presents a significant economic opportunity for the UK.”

Ends

For further information & images of MCT’s tidal technology:

Marine Current Turbines

Martin Wright, Managing Director Paul Taylor (Taylor Keogh Communications)

Tel: + 44 (0)117 979 1888 / +44 (0)7785 340671 Tel: +44 (0)20 3170 8465 / +44 (0)7966 782611

Email: paul@taylorkeogh.com

Siemens press office

Eva-Maria Baumann

Tel: +49 9131 18-3700

E-mail: eva-maria.baumann@siemens.com



Carbon Trust press office

Tel: +44 (0)207 544 3100

Client News-NEW INVESTMENT FOR AWS OCEAN ENERGY

NEW INVESTMENT FOR AWS OCEAN ENERGY

AWS outlines timetable for technology deployment

Scottish wave energy company, AWS Ocean Energy, has secured a £2 million investment from Scottish Enterprise’s Scottish Co-investment Fund and the Shell Technology Ventures Fund 1 B.V. (“STVF1”), an affiliate of Royal Dutch Shell.

This is the first-ever investment in AWS Ocean Energy made by Scottish Enterprise whilst it is AWS Ocean’s second tranche of investment from the STVF1, which is managed by Kenda Capital B.V..

The new investment enables AWS Ocean to take forward its plans to develop and deploy its wave power technology as well as help the company in its work to design associated technologies, such as mooring systems, for wider use in the wave and tidal energy sectors.

The new investment follows a review of the company’s technology which has resulted in significant improvements to the system now known as the AWS-III. The design builds on extensive research including offshore testing and detailed modelling of the AWS technology. The improved system will have a generating capacity of between 2.4 and 4MW.

Simon Grey, Chief Executive of AWS Ocean Energy said: “We are delighted to announce this investment by STVF1 and Scottish Enterprise’s Scottish Co-investment Fund as they vindicate our thorough and measured approach to development. STVF1/Kenda are very hands-on and we have benefited enormously from their experience in technology investment on challenging projects. Not only did they challenge our engineering approach but they also required the AWS-III to demonstrate the potential to compete cost-effectively with offshore wind before agreeing to invest further. It is not sufficient to produce a machine that works - we need to produce a machine that can generate electricity at a competitive cost.”

Aruna Subramanian, Investment Principal at Kenda Capital B.V. said: “Drawing on our understanding of offshore engineering and new technology challenges, we are excited by the latest development of AWS Ocean’s wave energy system. We are confident that the team at AWS Ocean, aided by their Technical Advisory Committee, who all have extensive and relevant experience in this sector and in technology development, will successfully address the major challenges faced in harnessing energy from the waves at a commercially viable cost.”

Andrew Sloane, senior investment manager at Scottish Enterprise, said: “This is an exciting investment for Scottish Enterprise, not only because the company is at the vanguard of wave power technology, but also because it marks our first venture with new investment partner Kenda Capital. Going forward, we hope our partnership with Kenda Capital will provide other companies in the already strong Scottish renewables sector with the risk capital required to grow and take advantage of new markets.”

Commenting on the cost of wave power, AWS Ocean’s Simon Grey said: “One of the key drivers behind our review was the cost of energy and the ability to contribute to the Government’s 2020 renewable energy targets. Making sure our customers can make adequate returns from AWS wave power on current tariffs is essential. Also essential is the ability to achieve rapid roll-out and the large scale of AWS-III contributes to both of these.

“Delivering the complete solution will take time. We are already in discussions with partners to ensure that AWS-III is available as a demonstrated commercial product by 2014. Industrial multinationals will be prepared to fund ‘big ticket’ demonstration projects providing that the technology is proven first and so our focus is to do just that: delivering proven technology that actually works.”

AWS Ocean Energy is presently undertaking component and sub-system testing and qualification and is aiming to deploy a full-system prototype AWS-III during 2011. The company is confident that this will lead to deployment of a pre-commercial demonstrator plant during 2013. Throughout this process, the AWS Ocean team will draw on the advice and support of the company’s Technical Advisory Committee (TAC) which was established following STVF1’s first investment in 2008 (see Notes to Editors).

Notes to Editors

1. AWS Ocean Energy (www.awsocean.com) was established in 2004. The company is chaired by John Anderson, the Chief Executive Officer of Entrepreneurial Exchange.



2. The company’s board and executive management team are advised by a Technical Advisory Committee comprising:

Dr Bruce Storm (formerly of Halliburton and a R&D physicist)

Professor Antonio Sarmento (IST Lisbon, Head of Portugal’s Wave Energy Centre)

Dr Tom Thorpe (wave energy specialist)

Andrew Mill (Chief Executive, NaREC and former Managing Director of EMEC)

Captain Peter Hodgetts (Managing Director of SeaRoc, marine engineering specialists)



3. Kenda Capital B.V. (www.kendacapital.com) is the independently owned manager of STVF1 which made its first investment in AWS Ocean Energy in February 2008. Kenda Capital B.V. and STVF1 maintain a unique technology relationship with Shell. Major investors in STVF1 are Shell, Coller Capital and the Abu Dhabi Investment Authority. STVF1 also has proprietary access to oil and gas field operations and wells in order to test, prove and demonstrate combinations of new technologies. STVF1 is a unique, large scale investment fund focused at reducing the cost of energy by accelerating the development and deployment of new technologies. Kenda and STVF1 possess a solid energy sector expertise, fostered through its technology relationship with the Shell Group.



4. The Scottish Co-investment Fund is a £72 million equity investment fund established by Scottish Enterprise, and partly funded by the European Regional Development Fund, to invest from £100,000 to £1 million in company finance deals of up to £2 million.



For further information

AWS Ocean Energy (www.awsocean.com)

Paul Taylor/James Court of Taylor Keogh Communications: +44 (0) 20 3170 8465 / paul@taylorkeogh.com / james@taylorkeogh.com



Scottish Enterprise

Andrew Sloane: +44 (0) 141 228 2787 / andrew.sloane@scotent.co.uk



Kenda Capital B.V.

Aruna Subramanian: +31 (0)70 413 4040 / info@kendacapital.com