Scotrenewables Tidal Power Limited (STPL) has accepted a US$14.36 million financing package that will help in the design, construction and installation of a Scotrenewables commercial-scale tidal turbine.
The package includes about $2 million in public funding from the Scottish government, with the remainder coming from three private companies.
Included are Norwegian shipping company Fred Olsen and French oil business Total S.A. -- both of which have invested in Scotrenewables before -- alongside newcomer ABB Technology Ventures.
"This is a major step on the road to making the company a real clean energy success story," said Barry Johnston, STRP founder and chief executive officer.
Under terms of the agreement, ABB will provide $8.12 million, with Fred Olsen and Total S.A. contributing the other $6.24 in private financing. These funds will be dispersed in two equal tranches, pending STRP's technical progression through the project.
The money will be applied to STRP's 2 MW "SR2000" tidal turbine, which is scheduled for completion in Spring 2014.
STRP previously tested a one-fifth model of the tidal turbine at a European Marine Energy Centre (EMEC) hydrokinetic test site near Orkney, Scotland.
The SR2000 will be installed at the Lashy Sound demonstration project under an "Agreement for Lease" awarded by the Crown Estate in November 2012.
HydroWorld.com reported in December 2011 that STRP had been honored at the International Tidal Energy Summit with a Tidal Today Award as its "Newcomer of the Year".