Swedish ocean energy developer Minesto and Faroese utility company SEV have extended and scaled up their joint venture in the development of their tidal energy project in the Faroe Islands.
According to an announcement from Minesto the “renewed and expanded” collaboration agreement includes “the ongoing electricity production in Vestmannasund and the first large scale tidal array in Hestfjord.”
“An important add-on to the extended agreement stipulates the exclusive nature of the collaboration regarding the Hestfjord site development and build-out,” Minesto said. “This aspect facilitates and supports the ongoing work to create an attractive investment and the set-up of a Special Purpose Vehicle (SPV) to funnel project investments, Power Purchase Agreement (PPA), potential public funding (e.g. EU) and other assets.”
The agreement also outlines the expanded operation at the existing Vestmanna production site, we’re told. Minesto recently completed the Dragon 4 site with a second subsea foundation and additional electrical infrastructure, with installation work onshore for the 1.2 MW Dragon 12 carried out simultaneously.
The collaboration is based on sharing of production and performance data from ongoing operations as well as in-depth analysis of site characteristics of the existing and planned site locations for joint business case assessments, Minesto CEO Dr. Martin Edlund explained.