Nicola Sturgeon pledges help after Aquamarine Power calls in administrators

Nicola Sturgeon has promised the Scottish Government will do ‘everything it can’ to help secure a buyer for renewable energy firm Aquamarine Power, after the company announced it has gone into administration.

Aquamarine Power runs two full-scale wave energy converters at the Orkney-based European Marine Energy Centre. The Edinburgh-based company was recently awarded a £580,000 grant from the European Union to help its development of commercial wave energy technology.

Aquamarine Power chief executive Paddy O'Kane put the decision down to financial and technical challenges in developing wave technology.

Lib Dem MSP for Orkney Liam McArthur used First Minister’s Questions to ask Sturgeon what action the Government would take following the news.

The FM said: “The Scottish Government remains absolutely committed to the marine energy sector and to doing everything that we can to help to secure a buyer for Aquamarine Power.

“It is also important to point out that, as I am sure Liam McArthur would acknowledge, we recently took steps to strengthen our commitment to the sector by establishing the wave energy Scotland initiative, which is the biggest wave technology development programme of its kind. We did that precisely be-cause we recognise the challenges that the industry faces just now, specifically the lack of private backers.”

McArthur described he news as “hugely disappointing”.

He said: “Aquamarine Power have worked in Orkney for a number of years. The decision to call in the administrators will not have been taken lightly and reflects just how challenging it is to bring new technology to commercial viability.

"We know that private investors often take their lead from the government. Tory Ministers seem determined to walk away from the progress we have made on renewables. Now we are starting to see the consequences of their actions.”

Meanwhile Max Carcas, chair of the Renewable Energy Association, said the decision was a “by-product of the investment uncertainty this [UK] government has caused in renewables”.

He said: “We have seen strategic leadership on nuclear, fracking and High-Speed 2, but little in making use of the unlimited energy resource surrounding our coasts. 

“Wave and tidal energy is an area where the UK has real technological leadership and a huge potential. We know we have a huge energy resource sitting on our doorstep.  We know it can be harnessed.  We know there is real potential for this new energy technology to be a significant export earner for the UK, much bigger than nuclear, fracking or HS2 , yet we don’t have a strategy for making it happen. 

“If marine had the same commitment provided to Hinkley, it could potentially provide cheaper energy, at a larger scale, and be a positive contribution to the UK’s balance of payments rather than a negative. Of course there are uncertainties, as indeed there are with Hinkley, but these can be better mitigated to give better value for money for the UK with relatively little investment required today.”