Pioneering energy solutions

An exciting growth equity investment opportunity of around £25 million has arisen to accelerate the scale up of Orbital Marine Power as it unlocks the next global offshore energy market. Investment will unlock more than £100 million of follow-on project finance opportunities.

Orbital Marine Power (Orbital) provides floating tidal technology delivering endless, predictable, low carbon power.

The case for investing in clean energy has never been stronger – the company is committed to tackling climate change, improving air quality and delivering net zero transition.

Driven by these global imperatives, over £8 trillion is projected to be spent on new renewable power between now and 2050. Orbital is ready to respond to this increasing demand for renewable energy.

With a forecast global market of 100 gigawatts, tidal energy has the potential to power over 80 million homes. Full deployment of this resource would generate an estimated annual spend in equipment and services of over £20 billion.

Investment opportunity

Driven by these global imperatives, over £8 trillion is projected to be spent on new renewable power between now and 2050. Orbital is ready to respond to this increasing demand for renewable energy.

With a forecast global market of 100 gigawatts, tidal energy has the potential to power over 80 million homes. Full deployment of this resource would generate an estimated annual spend in equipment and services of over £20 billion.

Orbital has developed a pioneering technology that can harness flowing currents in a cost-effective way. This will position the business to have a high level of control and ownership over this new multi-billion-dollar global renewable energy sector.

The company is seeking growth capital to scale up integrated engineering, procurement and construction (EPC) delivery resources. Investment will enable the deployment of its floating turbine technology in the first commercial projects, both in the UK market and overseas.

Equity investment will also flow into growing Orbital’s international project development pipeline, to create the route to market for the next phase of near-term commercial project deployments and further third-party sales.

It will also continue levelized cost of energy (LCOE) reduction work, supported by significant levels of pre-secured, non-dilutive grant funding.

Predictable revenue streams

Every megawatt of sales pipeline contracted creates value from a multi-year EPC project.

The owned project pipeline generates predictable revenue streams from both power sales, and ongoing maintenance and servicing revenue.

Expansion of both the market and project pipeline — along with securing project finance for construction of commercial scale Orbital O2 arrays — will set the company on a path to positive EBITDA by the mid-2020s.

Growth opportunity

Beyond the recent announcement by the government of Auction Round 4, future tidal energy deployment of up to 100 gigawatts is projected. An annual global market value of up to £20 billion is forecast for utility-scale tidal equipment sales and servicing.

There is further investment opportunity in the finance requirements of the company’s owned development pipeline, through Orbital project SPVs.

SPVs will procure Orbital turbines through EPC contracts, creating shareholder value and third-party sales for Orbital. This presents a further opportunity to initially deploy over £100 million of capital in the first phase of world-leading, predictable, low-carbon energy projects.

The untapped river hydrokinetic market also represents an opportunity for a variation of the technology to be deployed. Work in contextualising and measuring the scale of this opportunity has already commenced, including collaborative studies with BMW, Designworks, and other marine energy industry experts.

Find out more on the Orbital Marine Power website opens in a new window  

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