Minesto to concentrate Dragon Class operations in the Faroe Islands in 2022

Minesto has decided to concentrate this year’s operations with its Dragon Class marine energy converters at the established and grid-connected site in Vestmannasund, Faroe Islands. This plan will mitigate supply chain delays and at the same time allow Minesto to take advantage of significant synergies and new opportunities for more cost-effective operations, electricity production under an existing Power Purchase Agreement, and hence a quicker route to commercial roll out.

Minesto’s first D4 unit will go straight into continuous grid-connected operation in Vestmannasund, Faroe Islands during the first half of 2022 as originally intended.  To optimise the timeline, Minesto has decided to install also the second D4 (100 kW) and the larger D12 (1.2 MW) units in Vestmannasund during 2022, rather than deploying them for demonstration testing in France and Wales, as originally planned.

“We are confident that this restructuring of our ongoing projects is the best way forward. This is the most value-creating use of investments, both private and public, in our EU-funded collaborations with the Welsh European Funding Office and the Interreg Tidal Stream Industry Energiser Project. The funding agreements for these projects remain the same, and so does our commitment to develop an 80 MW commercial array off North Wales”, said Dr Martin Edlund, CEO of Minesto.

”Streamlining our installations to one location brings significant synergies in terms of risk reduction, logistics and costs. It is the fastest approach to demonstrate the upgraded powerplant performance, to generate revenues and to enable large-scale buildout of arrays in multiple locations.”

This decision mitigates potential project delays from the supply chain. Due to the Covid-19 pandemic there have been uncertainties and delivery challenges which are more efficiently managed by concentrating operations to one geographical site.

The new project plan allows for back-to-back commissioning and concurrent operations of the two D4 units and the following D12 utility-scale unit. This will enable Minesto to generate electricity production data from long-term, grid-connected operations for use in all ongoing collaborative projects.

”Our collaboration with SEV continues and their role in providing grid connections, consenting, on the ground support and simply being the world’s first advanced customer of Deep Green tidal energy is of significant value to us. Not to mention that the three units will produce electricity under the existing Power Purchase agreement”, said Martin Edlund.

Further, Minesto’s collaboration with its French partners also continues, with focus on deliverables within the TIGER project on cost of energy reduction roadmap and demonstration of the low environmental impact of operations. In Wales, the work now focuses on assembly and in-factory testing of the commercial scale 1.2 MW D12 unit and key supporting systems such as bottom joint and installation frames. Production data from this system will support the ongoing site development work towards the buildout of an 80 MW array in Holyhead Deep.

For press/media requests, please contact

Cecilia Sernhage, Communications Manager
+46 735 23 71 58
cecilia.sernhage@minesto.com

The information in this press release is such that Minesto AB (publ) shall announce publicly according to the EU Regulation No 596/2014 on market abuse (MAR). The information was submitted for publication, through the agency of the contact person set out above, at 11:00 CET on 14 March 2022.

About Minesto

Minesto is a leading marine energy technology company with the mission to minimise the global carbon footprint of the energy industry by enabling plannable commercial power production from the ocean.

Minesto’s award winning and patented product, Deep Green, is the only verified marine power plant that operates cost efficiently in areas with low-flow tidal streams and ocean currents.

With more than €40 million of awarded funding from the European Regional Development Fund through the Welsh European Funding Office, European Innovation Council and InnoEnergy, Minesto is the European Union’s largest investment in marine energy to date.

Minesto was founded in 2007 and has operations in Sweden, Wales, Northern Ireland and Taiwan. The major shareholders in Minesto are BGA Invest and Midroc New Technology. The Minesto share (MINEST) is traded on Nasdaq First North Growth Market. Certified Adviser is G&W Fondkommission, email: ca@gwkapital.se, telephone: +46 8 503 000 50.

Read more about Minesto at www.minesto.com

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Financial information including reports, prospectuses and company descriptions is available in Swedish at www.minesto.com/investor.