Minesto CEO: Q1 2024 lays foundation for path to commercial tidal energy array buildout

Swedish tidal energy developer Minesto has reported a total operating income of approximately SEK 6.8 million (around €582,255) for Q1 2024, a quarter the company said has laid the foundation for the path toward the buildout of commercial arrays.

The total operating income saw a decline from SEK 12.7 million in the same period last year and mainly included capitalized development work.

Operating loss amounted to around SEK 11.8 million, as opposed to SEK 6 million in Q1 2023 – a negative result said to be largely attributable to business development and administration related to technology development and includes costs such as personnel and consultants. Of the personnel costs, SEK 6.7 million (SEK 10.9 million last year) has been capitalized as development work.

Grants amounted to SEK 439,000 accrued during the period, of which SEK 425,000 reduced the acquisition value of the capitalised development costs. During the period, payments of around SEK 27.5 million were received from public funding schemes, of which SEK 26.2 million is approved claims and the remaining part is advance payments.

The Swedish Energy Agency in February awarded Minesto with a SEK 2.8 million grant to support the development and testing of a next-generation mooring system.

Minesto’s CEO Martin Edlund said: ”Minesto’s first quarter has been significant and lays the foundation for the company’s path towards buildout of commercial arrays. We now have full focus on business development to secure commercial rollout.”

In terms of significant events that occurred in the first three months of 2024, Minesto on February 9 commissioned its 1.2 MW, 25-ton Dragon 12 tidal energy kite, delivering the first electricity to the national grid in the Faroe Islands.

After the first two weeks of testing, the company reported that the Dragon 12 functionality was verified and power production performance satisfactory and as projected, concluding that the technology risks of scale-up have been significantly reduced.

Last month, Minesto was awarded a place in the BAPSEA (Business Acceleration Programme Southeast Asia) acceleration program, with the goal of strengthening its business capabilities in the Southeast Asia region.

The marine energy technology company also signed a collaborative agreement with Hydrokite Project Development, an ocean current and tidal energy project developer, to bring its technology to markets in Australia and New Zealand.