Orbital Marine Power Ltd.

Management Reports • Mar 22, 2023

National Storage Mechanism | Additional information

RNS Number : 7603T

Orbital Marine Power Ltd

22 March 2023

22 March 2023

Orbital Marine Power Ltd

("Orbital" or the "company")

Orbital Marine Power unveils new 30MW tidal energy project in Orkney waters

Company plans include significant job creation and boost to its UK supply chain plans.

Orbital Marine Power (Orbital), the renewable energy company focused on the commercial deployment of its innovative floating tidal turbine technology, announced it has been awarded an Option Agreement from Crown Estate Scotland for a new tidal energy project in the Westray Firth.

Orkney-headquartered Orbital also confirmed it has a grid connection in place to service the pioneering project, which is located adjacent to the European Marine Energy Centre (EMEC) facility, where Orbital has already deployed the 2MW O2, the world's most powerful tidal turbine, under commercial operation. Renewable projects in Orkney were recently given a boost by Ofgem announcing it is minded to approve a new 220MW transmission connection, to be built from the Scottish mainland to service renewable power exports from the islands.

Following the award of contracts for difference (CfDs) in last year's AR4 process, Orbital is already targeting the installation of three more of its tidal turbines at the EMEC site, alongside the O2, to expand its tidal generation capacity in the coming years.

In keeping with the company's strategy of carrying out major aspects of its manufacturing within the UK, the construction of the Westray project would be expected to result in over £120m of domestic supply chain spend and create hundreds of jobs across construction and around a dozen new permanent jobs locally to provide operations and maintenance services.

The Option Agreement is for 30MW, which would equate to approximately 12 Orbital devices installed across the site. The waters around Orkney have significant wider tidal stream energy potential and the Westray site offers just one example of how this can be harnessed to provide clean, predictable power.

The Orbital team is engaged with stakeholders and is progressing environmental studies, with a view to reaching consent application as soon as possible. The company also brings the benefit of extensive local operational and environmental data to help shape and inform optimal project design, having successfully installed, operated and monitored multiple floating tidal projects on the neighbouring EMEC site since 2011.

Andrew Scott, CEO at Orbital Marine Power, said: "As the UK looks to accelerate the decarbonisation of its energy system, we firmly believe tidal projects can bring unique benefits while harnessing a perfectly predictable and secure source of renewable energy. We're proud to be building that vision in Orkney with this investment in our Westray Project."

Alistair Carmichael, MP for Orkney and Shetland, said: "These are exciting times for tidal stream energy. Progress with Orbital's Westray project is a vote of confidence in the potential here in the isles and demonstrates exactly why expanding grid capacity for Orkney has been so important.

"This good news is also evidence of the need for a more robust strategy from the government on tidal stream deployment, including continued and expanded backing in the next round of Contracts for Difference funding. We need to continue to ramp up development in the years to come."

Sian Wilson, Crown Estate Scotland, said: "The Orbital team has successfully secured development rights to progress the tidal energy site located in the Westray Firth which offers a great opportunity to tap into the vast tidal energy resource within Orkney Waters. The predictable nature of tidal energy means such projects will perform a crucial role as we transition to a decarbonised energy system and build Scotland's blue economy."

Ends

About Orbital Marine Power Ltd.

Orbital Marine Power (Orbital) is a visionary, Scotland-based, renewable energy company focused on the development and global application of its pioneering floating turbine technology.

The culmination of over 15 years of refinement has resulted in the world's most powerful and advanced tidal stream turbine, the O2, which has been exporting low carbon electricity to the UK grid since July 2021. The O2 is a 2MW+ product capable of being deployed in multi-unit arrays to provide utility-scale, clean energy with almost zero visual impact.

Orbital's innovative, approach de-risks the commercial extraction of low carbon energy from fast flowing currents by offering low manufacturing and installation costs as well as the ability to carry out inexpensive, quick servicing on all major turbine components through a proprietary structural configuration.

Orbital has an established portfolio of further multi-MW tidal stream projects, focused initially within UK waters, built on a global pipeline of multi-GW opportunities.

More information about Orbital can be found here: www.orbitalmarine.com

The inspiring story of the O2, from concept to power generation, in under two minutes can be viewed here.

About the O2

·    The O2 is the world's most powerful tidal turbine, able to generate 2MW+.

·    It was launched in 2021, as the first vessel to be launched from a Dundee yard in 40 years.

·    Its estimated CAPEX expenditure in the UK supply chain is around 80%, with around 60 full time equivalent roles created through build.

·    The O2 has been operational since July 2021 and exporting electricity to Orkney grid is expected to offset around 2,000 tonnes of CO2 per year, and power 1,700 UK homes while creating high value jobs within the local economy over the course of its operational life.

·    Orbital's floating technology captures the strongest tidal and river currents, guaranteeing higher yield. These exist close to the surface, rather than at the seabed.

Media contacts at Orbital Marine Power:

Sarah Clark, Marketing & Media Manager: [email protected]

Tom Gillingham, Charlotte Street Partners: [email protected] / 07741 659 021

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