InnovFin EDP draws ocean energy developers’ attention

InnovFin Energy Demo Projects (EDP) funding scheme has attracted 17 ocean energy projects out of 60 projects in total to apply for an InnovFin loan.

InnovFin EDP, a joint venture between the European Commission and the European Investment Bank (EIB), launched in June 2015, is a financial scheme created to fund further development of pioneering renewable energy technology.

As of January, 60 renewable energy projects had applied for funding under the InnovFin EDP scheme, according to ICIS, a market intelligence provider for energy, chemical and fertilizer industries.

“Of the 60 projects to have applied for an InnovFin loan, 17 are ocean energy projects of varying types, so the technology is well represented. The main issue with the project in terms of further development of ocean technology is the size of the rather large loan,” Jacopo Moccia, Policy Director at Ocean Energy Europe said for ICIS. “Alternative sources of funding are of course available, but ask anybody involved in research and development and they will tell you it isn’t enough.”

The minimum loan for the project is €7.5 million, ICIS states. The costs of this mean it is not financially viable for the EIB to lend small amounts of capital, which in turn rules out small projects which may only require a loan of €1-2 million.