Minesto Leads Consortium Awarded SEK 25 Million Grant for Tidal Microgrid Project in Faroe Islands
Minesto, a Swedish tidal energy developer, is at the forefront of a consortium that has secured a SEK 25 million grant from the Swedish Energy Agency to establish a complete microgrid installation in the Faroe Islands.
The consortium, which includes Minesto, Capture Energy, SEV, and IVL Swedish Environmental Research Institute, has a total project budget of SEK 56 million over two years, with the Swedish Energy Agency covering SEK 25 million of the funding.
The primary objective of the project is to showcase a tidal-based microgrid solution capable of delivering baseload power. By leveraging Minesto’s tidal power plants and Capture Energy’s microgrid management systems, the project aims to penetrate the global market for autonomous and island-mode grid solutions.
SEV, an existing partner of Minesto, will contribute as a microgrid user and aid in feasibility studies for future commercial installations. IVL will assess the environmental impact of the system.
Scheduled to commence in August, the project targets remote, non-grid-connected sites in the Faroe Islands and aims to have a fully operational microgrid by 2026.
“The global multibillion-Euro microgrid business is a vital parallel track to build-out of larger Dragon Farms (multimegawatt arrays) based on the same Dragon-class systems. This new partnership with Capture Energy makes it possible for us together to offer turn-key microgrid tidal power generation to local customers in need of renewable base-load energy,” said Martin Edlund, CEO of Minesto.
Minesto’s strategic focus on the microgrid market is underlined by an estimated €300 billion addressable value, ranging from small kW installations to large multi-megawatt (MW) projects.
“The microgrid business has significant strategic value for Minesto. It is in itself a substantial global market and it also offers market entry projects with new commercial partners to create confidence in our unique technology and to speed up collection of local data for environmental permitting and certification,” Edlund added.
Addressing the energy challenges faced by remote island communities, such as dependency on imported fossil fuels, price fluctuations, and supply interruptions, Minesto aims to tap into the untapped tidal energy potential of the Faroe Islands.
“This award from the Swedish Energy Agency adds vital financial support and recognition to Minesto’s commercial agenda,” concluded Edlund.
Recently, Minesto secured a SEK 22 million loan from Fenja Capital to bolster its working capital for ongoing operations and business development.
Furthermore, Minesto’s upgraded Dragon 12 tidal energy device in Vestmannasund, Faroe Islands, achieved a significant performance milestone, exhibiting a 25% increase in power output following the installation of an extended tether.