Minesto Finalizes Reorganization Process to Drive Commercial Rollout

Swedish tidal energy developer Minesto has recently completed a reorganization process aimed at streamlining its operations for a successful commercial rollout while reducing fixed costs. The strategic changes implemented include geographic consolidation, a streamlined management structure, and tighter integration of product development. As a result, the company has reported a significant 35% reduction in fixed costs.

Office Consolidation and Operational Focus

One of the key changes made by Minesto includes the closure of its Holyhead office in Wales, with the Support and Operations management now co-located at the company’s headquarters in Gothenburg, Sweden. Operations are now primarily centered around the existing site in Vestmanna, Faroe Islands, where Minesto is collaborating closely with local partners to drive project success.

“We have concentrated the Minesto organization at the head-office in Göteborg and closed-down the office in Wales for efficiency and synergy reasons. We remain fully committed to our tidal site and build-out plan for Holyhead Deep, retaining local presence regarding site development. Our ability to get Holyhead Deep financed and built is not affected by this shift,” stated Martin Edlund, CEO of Minesto.

Management Restructuring and Enhanced Collaboration

As part of the reorganization, Minesto has reduced its management team from eight to six members. The company has emphasized broader responsibilities for commercialization and project delivery, fostering a more collaborative and efficient work environment.

“We are grateful for the lasting value that David Collier – Chief Strategy Officer and Hans Lindström – Chief Supply Chain Officer contributed to Minesto. In our new smaller team, we have found a good balance in dividing and sharing responsibilities. Notably, the cross-functional nature of commercial development in our emerging business makes it a success-factor to have customer involvement from the whole team. Further, our partnership with EY working on investment cases, financing and investor interactions has proved to be very constructive,” added Edlund.

Focus on Product Development and Operations

Minesto has also intensified the integration between product development and operations, particularly in areas such as array installation methods and scaling up manufacturing for its Dragon systems. The company has transitioned from broad-based research to project-specific customization, leading to a more targeted and efficient R&D approach.

“We have improved our ability to source external resources for site development and operations. Our international partners TCC Green Energy, Hydrokite, Poseidon & Sev to name a few are involved hands on in site development work targeting sites for Minesto Dragon build out,” highlighted Edlund.

“Also, closer relationships with suppliers on product development and manufacturing have expanded our resource-base whilst not increasing our headcount, for example with SKF on drive trains and steering modules, Future Fibres (a part of North Technology Group) on the unique anchoring tether and Elitkomposit on planning for scale-up of the critical wing manufacturing.”

Future Outlook and Project Milestones

Following the reorganization, Minesto now operates with 36 employees and maintains the flexibility to scale up as needed. In a recent development, the company led a consortium that secured a SEK 25 million grant from the Swedish Energy Agency to build a complete microgrid installation in the Faroe Islands, showcasing its continued commitment to sustainable energy solutions.

Overall, Minesto’s strategic reorganization sets the stage for a successful commercial rollout and underscores its dedication to innovation and excellence in the tidal energy sector.