Client News-Marine Current Turbines and ESBI enter into agreement to develop major tidal energy project in Northern Ireland

ESB International (ESBI) has entered an agreement with tidal energy company Marine Current Turbines (MCT) to develop an initial phase of a 100MW tidal energy project off the Antrim coast in Northern Ireland.

ESBI and MCT will work together to submit a proposal to the forthcoming Marine Leasing Round in Northern Ireland to secure an Agreement for Lease from The Crown Estate to commence formal consenting of the project. If successful, and subject to the achievement of consent, the initial phase of the project, which will use the MCT SeaGen device, could be in operation by 2018. The ESBI/MCT project will assist Northern Ireland in achieving its marine renewable energy targets as outlined in the Northern Ireland Department of Enterprise, Trade & Investment’s Strategic Action Plan which calls for 300MW of tidal energy by 2020.

SeaGen is the largest and most powerful tidal stream turbine in the world and the only one that is regularly generating electrcitiy for customers, having been accredited by OFGEM, the UK industry regulator, as an “official” power station. The award-winning 1.2MW turbine has been operating in Northern Ireland’s Strangford Lough since April 2008 and last month (August) achieved another operational milestone by delivering its 2 millionth kWh of power to the grid. Thanks to Strangford being an exceptionally energetic location, SeaGen regularly produces as much electricity as an average off-shore wind turbine of double the rated power. This power is already being sold by ESB’s retail electricity supply business, ESB Independent Energy, to customers in Northern Ireland.

Safeguarding the environment is a key issue and ESBI is preparing an environmental scoping report on the project as an initial step in undertaking a full environmental impact assessment. In order to gain a thorough understanding of the tidal potential, ESBI has also undertaken tidal resource measurements off the Antrim coast over the summer months. This data is currently being analysed and it is planned to undertake further surveys in the coming months.

ESB Chief Executive, Padraig McManus, said ESB's strategy to 2020 involves focusing on sustainable and renewable energies. "We look forward to working with MCT on this exciting new project. Our aim is to use our experience and technical strength to support the development of a viable ocean energy industry in Ireland and this project is an important step in realising that goal", he said.

Martin Wright, Managing Director of Marine Current Turbines said "This agreement underlines the success to date of the SeaGen project in Strangford Lough but importantly the real and growing commercial interest in tidal energy. Our agreement with ESBI, which has been a valued shareholder in MCT for 2½ years, confirms MCT's tidal technology at being in the forefront in the race to harness the power of tides. We are pleased that ESBI has chosen MCT to develop the initial phase of this project."

Notes to Editors

About ESB

ESB has a corporate target to develop 150MW of ocean energy in Ireland by 2020 and the proposed tidal project off the Antrim Coast is a key project in delivering this target. ESB's retail subsidiary, ESB Independent Energy, already supplies tidal energy to its customers in Northern Ireland through its purchase of the electricity output from the SeaGen tidal facility in Strangford Lough. ESB is one of the first utilities in the world to provide tidal energy to its customers.

The Board of ESB approved a strategic framework with a €22 billion investment programme to 2020. The main focus of the framework is the sustainable and responsible use of natural resources, leading to the halving of its carbon emissions within 12 years and attainment of a carbon net-zero position by 2035. About half of the total €22 billion investment package will be devoted to renewables through direct investments in renewable energy projects and initiatives supporting sustainability such as smart metering and smart networks.

By 2020, ESB will be producing one-third of its electricity from renewable generation, delivering over 1,400MW of wind generation (with over 100MW already installed), and exploiting the potential of wave, tidal and biomass resources. ESB Networks will invest €11 billion in vital infrastructure to facilitate the development of up to 6,000MW of wind power on the island of Ireland.

www.esb.ie www.esbi.ie

About Marine Current Turbines

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. The company is chaired by Paul Lester, the former Chief Executive of VT Group plc.

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.

MCT’s 1.2MW SeaGen was deployed in Northern Ireland’s Strangford Lough in April 2008; it has the capacity to generate electricity for the equivalent of about 1500 homes and has the equivalent in energy output as a 2.5MW wind turbine. SeaGen 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.

MCT is working with RWE npower renewables to develop a 10MW tidal farm off Anglesey by 2013/2014 and with Minas Bay Pulp & Paper to deploy a single SeaGen system in Canada’s Bay of Fundy. In March 2010, MCT secured approval for a lease from The Crown Estate to deploy its 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 there during 2017 with the whole scheme operational by 2020.

TAYLOR KEOGH RECRUITING PR ACCOUNT MANAGER TO JOIN TEAM

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ANGLESEY TIDAL ENERGY PLAN MOVE FORWARD

Public exhibition on August 23 & 24th at Holyhead Town Hall

Marine Current Turbines Ltd and its project partner, RWE npower renewables, will be hosting an exhibition about their plans to harness the power of the tidal waters off the north-west coast of Anglesey to generate electricity for up to 20% of the Island. The exhibition, open to members of the public, will be held at Holyhead Town Hall on August 23rd and 24th.

The exhibition is an opportunity for people to learn more about the proposed project, which was first announced in February 2008, in advance of Marine Current Turbines (MCT) and RWE npower renewables submitting a planning application for the offshore elements (the tidal turbines and the subsea cables) of the scheme to the Welsh Assembly Government. The application for offshore consent is likely to be submitted in September.

The proposed tidal energy scheme will consist of up to 9 turbines to be located between the Skerries group of rocks and islands and Carmel Head about 1Km off the Anglesey coast. The 10.5MW tidal farm, using the fast moving and predictable flow of the tides, will use MCT’s proven and award-winning tidal energy technology (known as SeaGen and which is essentially an underwater windmill) to generate enough power to supply electricity to around 10,000 homes – approximately 20% of Anglesey’s electricity demand.

Subject to securing planning and financing for the project, MCT and RWE npower renewables are targeting 2013/2014 for the start of commissioning. The estimated cost of the project is £50million.

For the past 36 months, the project team has been carrying out a series of environmental, engineering and technical studies to examine the suitability of the Skerries site and to assess the potential impact of the tidal farm on marine life and users of the sea.

In addition, Marine Current Turbines has consulted a range of organisations about its plans, including Ynys Mon County Council, the Countryside Council for Wales, RSPB, Trinity House, the Maritime & Coastguard Agency and the Centre for Environment, Fisheries & Aquaculture Sciences. In addition, MCT has spoken with a number of recreational groups that use the area including sailing, kayaking, diving and fishing groups. To date, the proposed scheme has been widely welcomed.

In the development of its plans for the Skerries, the company has drawn upon the experience of its tidal project in Northern Ireland’s Strangford Lough. The single SeaGen tidal turbine has been generating power into the local grid since 2008 and as part of its licence conditions to operate is subject to a comprehensive environmental monitoring programme.

Joseph Kidd, Development Manager at Marine Current Turbines said: “We consider the Skerries stretch of water to be an ideal site for a small tidal farm and we are keen to hear people’s views before we finalise the planning application. The exhibition is also an opportunity for people to learn more about the advantages of tidal power and how our scheme can benefit the Anglesey economy. The scheme will not only generate clean energy for local homes and businesses but also give local firms the chance to be involved in the tidal farm’s installation and operation.”

Commenting on the plans for the Skerries tidal farm, Albert Owen (MP for Yyns Mon) said: “I welcome all forms of renewable energy and hope that people will take this opportunity to look at this technology and the future that Anglesey has in tidal power.”

In Northern Ireland, a number of local companies such as marine support vessels, engineering and electrical contractors, civil engineers, environmental scientists and divers as well as local hotels, pubs and restaurants have benefited from MCT’s SeaGen project. It is estimated that the project has contributed more than £4.0m into the local economy over the past three years.

The Skerries tidal project exhibition will be held at Holyhead Town Hall Newry Street, Holyhead LL65 1HN

Monday, August 23rd from 2.00pm till 8.00pm

Tuesday, August 24th from 9.00am till 2.00pm

For further information:

Marine Current Turbines (www.marineturbines.com)

Joe Kidd, Project Manager

Tel: 0117 979 1888

or

Paul Taylor (Taylor Keogh Communications)

Tel: 020 3170 8465 / 07966 782611 /paul@taylorkeogh.com

RWE npower renewables

Mark Fleming

Tel: 01793 474173 / 07825 608096 / mark.fleming@rwe.com

Notes to Editors

About Marine Current Turbines:

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. The company is chaired by Paul Lester, the former Chief Executive of VT Group plc.

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 electricity for the equivalent of about 1500 homes and has the equivalent in energy output as a 2.5MW onshore wind turbine. SeaGen 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. MCT is working with Minas Bay Pulp & Paper to deploy a single SeaGen system in Canada’s Bay of Fundy, and in March 2010, MCT secured approval for a lease from The Crown Estate to deploy its 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 there during 2017 with the whole scheme operational by 2020.

About RWE npower renewables:

1. RWE npower renewables is the UK subsidiary of RWE Innogy and is one of the UK's leading renewable energy developers and operators, committed to developing and operating wind farms and hydro plant to produce sustainable electricity. The company operates 17 hydroelectric power projects and 23 wind farms in the UK, including the country's first major offshore wind farm, North Hoyle. RWE npower renewables is also working with marine energy technology partners to deliver new wave and tidal stream power projects in the UK. Through our existing projects and those in development, we are working in close partnership with communities and companies throughout the UK. As Government policy focuses on achieving its EU commitment for 15% of UK energy to come from renewables sources by 2020, renewable electricity generation will need to increase to 30% of total output. We will be at the forefront of realising this aim.

2. In Wales, the company operates six hydroelectric power projects in North Wales, two offshore wind farms – North Hoyle, the UK's first major offshore wind farm, and Rhyl Flats, the largest renewables project in Wales, both off the North Wales coast. It also operates seven onshore wind farms from Neath in South Wales to Anglesey in the north.

3.RWE Innogy pools the renewable energy expertise and generating plant of the RWE Group. The company plans, builds and operates renewable power generation facilities, and aims to vigorously grow its renewable energy capacity in the UK and Continental Europe.

4. RWE npower renewables is a sister company to RWE npower, a leading integrated UK energy company with around 6.8 million customer accounts. RWE npower also owns and operates a flexible portfolio of conventional power stations as well as a portfolio of cogeneration plant producing more than 10% of the electricity used in England and Wales.

5. RWE is a major employer in Wales, operating three renewables office bases in South, Mid and North Wales, the Aberthaw Power Station and two Combined Heat and Power plants at Barry and Bridgend. In all, RWE's installed conventional and renewable energy generation in Wales supplies the equivalent of around one-third of Wales' electricity needs.

6. For further information about RWE npower renewables and RWE Innogy visit www.npower-renewables.com and www.rweinnogy.com For further information about RWE npower visit www.rwenpower.com