Wave energy firm goes into administration

The Scottish wave energy firm Aquamarine Power has called in the administrators.

BDO LLP business restructuring partners James Stephen and Graham Newton have been appointed Joint Administrators and will now take over the running of the firm.

The Joint Administrators will continue to trade the company with a view to selling it as a going concern. All 14 employees are being retained.

In September, Public Sector Energy reported that Aquamarine Power and the National University of Ireland, Maynooth (NUIM) have secured European funding to help develop their Oyster wave energy converter. 

"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 £2 million contract from Wave Energy Scotland, the economic climate has significantly affected the business,” said BDO business restructuring partner, James Stephen.

“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.”

"We are continuing discussions with interested parties who were in discussions with the company prior to our appointment and are working closely with the Aquamarine Power board to engage with other potential purchasers. We welcome new enquiries."

Responding to the news the Chair of the REA Ocean Energy Group, Max Carcas, said: “This is another by-product of the investment uncertainty this Government has caused in renewables. 

“We have seen strategic leadership on nuclear, fracking and High-Speed 2, but little in making use of the unlimited energy resource surrounding our coasts.”

Jamie Hailstone is a freelance journalist and author, specializing in local government, transport and energy issues