Orbital Marine Power awarded two CfDs as part of UK Government renewable energy auction

UK supply chain investment and cost reduction pathway unlocked as company looks to positive future

Orbital, the renewable energy company focused on the development and global deployment of its pioneering floating tidal stream turbine technology, has been awarded two contracts for difference (CfDs) in the UK Allocation Round 4 (AR4) process.

This is a significant milestone in the company’s growth, with these CfDs underpinning the delivery of multi-turbine projects in Eday, Orkney.

Capable of delivering 7.2MW of predictable clean energy to the grid once completed, these Orbital tidal stream energy projects can power to up to 7,200 homes, supporting the UK’s security of supply, energy transition and broader climate change objectives.

This positive outcome also means Orbital can make a transformative investment in its UK supply chain, with around 150 jobs expected to be created through the manufacture and installation phase alone. On a jobs per MW installed basis, this would represent an unprecedented level of UK role creation for the construction phase of a renewable energy project.

Andrew Scott, CEO of Orbital Marine Power, said: “This award is an important validation of our pioneering technology and overall approach to-date. Securing these CfDs is the first step; with successful delivery against the AR4 commitments now the true measure of success. We will now build on our track record for financing pioneering projects – as evidenced by the O2 – continuing to offer investors the opportunity to scale up a predictable and reliable new source of clean energy. This journey will ultimately also reduce costs and increase jobs across our UK supply chain.

“The UK government’s courageous decision to create a tidal ringfence within the AR4 process was essential in getting us to this point. For industry-wide progress to be sustained, it is now vital that a long-term vision is created by Government, along with similar ringfence allowance in future allocation rounds. We already have further shovel-ready capacity, and we are investing in the development of new sites to ensure that Orbital can deliver additional commercial projects across the nations of the UK.”

Orbital is collaborating with TechnipFMC – a leading technology provider in the traditional and new energies industries with a track record of delivering large-scale fully integrated offshore projects, products and service – to accelerate the global commercialisation of its tidal stream solution.

Release date: 7 July 2022