Minesto puts together investment offer for buildout of tidal kite array

Swedish tidal energy developer Minesto has put together an investment offer for the first-phase buildout of an array of tidal kites in Hestfjord, Faroe Islands.

According to Minesto, the actual production results of its utility-scale tidal energy kite Dragon 12 (D12) are used to accurately predict electricity production volumes in the site’s business plan.

One Dragon 4 (D4) unit, installed in March, has received hardware upgrades. The second D4 went in June in Minesto’s Gothenburg workshop for the same upgrades.

The installed power plants contribute to progress in environmental monitoring, which is valuable for the development phase in Hestfjord, said Minesto. This monitoring includes sound measurements, bird studies, and whale monitoring. D12 underwent service and inspection, after four months of grid-connected operation in Vestmana, Faroe Islands.

The Swedish tidal energy developer reported a total operating income of SEK 13,549 thousand (approximately $1.3 million) for the first half of 2024, as opposed to SEK 25,016 thousand from last year, primarily from capitalized development work. Net sales were SEK 75 thousand as opposed to SEK 391 thousand from the last year.

The operating loss reached SEK –23,268 thousand, compared to last year’s –13,271 thousand, mainly due to business development and technology-related administrative costs. SEK 13,452 thousand of personnel costs were capitalized as development work, down from SEK 22,549 thousand last year.

Grants accrued during the period totaled SEK 414 thousand, down from SEK 23,206 thousand last year, with SEK 406 thousand reducing the capitalized development costs, said Minesto.

Payments from public funding schemes amounted to SEK 27,627 thousand, down from SEK 40,533 thousand last year. Of this, SEK 26,298 thousand, previously SEK 40,533 thousand, were approved claims, with the remainder as advance payments.

For the 2023 financial year, Minesto reported a total operating income of almost SEK 45.6 million (around €4 million), a slight decline from SEK 45.7 million in 2022.

Minesto’s operating loss was almost SEK 28.7 million, as opposed to SEK 23.7 million reported for 2022 – a negative result said to be attributable to business development and administration related to technology development and includes costs such as personnel and consultants.