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Minesto's Year-End Report 2024: A Leap Forward in Tidal Energy

Minesto AB, a leading renewable energy company based in Sweden, recently published its Year-End Report for 2024, showcasing significant milestones achieved in developing competitive tidal energy solutions. Under the leadership of CEO Dr. Martin Edlund, Minesto has made impressive strides in harnessing untapped natural resources through innovative technology. Here’s a detailed overview of their progress, emphasizing key projects and strategic initiatives that highlight the company's commitment to sustainable energy production.

Key Developments from October to December 2024

During the final quarter of 2024, Minesto continued its work on the Hestfjord Dragon Farm project located in the Faroe Islands. This pioneering tidal energy array features the Dragon 12-kite system, with an initial phase capacity of 10 MW, symbolizing a major milestone for Minesto's innovative approach to renewable energy.

The successful installation of the Dragon 12 in Vestmanna has generated considerable interest from various stakeholders eager to explore the potential of Minesto’s technology. To further this endeavor, Minesto has engaged Ernst Young (EY) as a strategic advisor for the Dragon Farm project, focusing on attracting investments and ensuring efficient project execution.

In December, the company proudly announced the completion of the specifications for the Hestfjord Dragon Farm, based on the verified performance data of the Dragon 12 system. This includes detailed technical specifications essential for the achievement of the project's first phase, further underscoring Minesto's commitment to advancing its tidal energy capabilities.

Additionally, Minesto made a notable presentation at Enlit Europe, one of the largest international energy conferences held in Milan, showcasing their innovative solutions to an audience deeply interested in climate change and renewable technologies. At COP29 in Baku, Azerbaijan, the company's involvement emphasized the role of innovation in coping with global climate issues, where Minesto hosted discussions on sustainable energy solutions.

Continuing Engagement and Future Plans

In February, after the reporting period concluded, Minesto hosted a seminar with Faroese stakeholders and the public at the Nordic House in Torshavn. CEO Dr. Edlund shared the company’s ambitious vision for a sustainable energy framework in the Faroe Islands, which includes a roadmap for a 200 MW tidal energy buildout. The event demonstrated strong engagement from local stakeholders, illustrating the community's investment in Minesto's project.

An independent review of Minesto’s Dragon-class technology, conducted by DNV—a global leader in technology assessment and certifications—has strengthened Minesto's investment case and validated the readiness of their technologies for large-scale deployment.

Financial Overview and Strategic Initiatives

As of December 31, 2024, Minesto reported a total operating income of SEK 33,035 thousand, primarily driven by capitalized development work. However, the company faced an operating loss of SEK -37,345 thousand, which reflects extensive investments in technology development and business growth.

Despite the operating loss, Minesto reported tangible growth in intangible assets, which have increased to SEK 544,924 thousand, underscoring the company’s strong foundation for future advances. Minesto's dedication to fostering relationships with local investors and business communities has led to the realization of favorable agreements, such as a newly revised power purchase agreement (PPA) for the Hestfjord project.

The Dragon Farm investment plan, spearheaded by a local project development company Drekin Sp/f, opens opportunities for local investors to participate in the project, highlighting Minesto's commitment to integrating local stakeholders into their energy solutions.

Strengthening the Team and Future Outlook

The evolution of Minesto's internal team remains at the core of its success. The company has reduced personnel costs by approximately 30% from 2023 to 2025, streamlining operations while reinforcing their commercial focus. As they progress, Minesto continues to identify optimal funding scenarios, including private investment opportunities, project financing, and public funding initiatives to support their goals.

The momentum built in 2024 places Minesto on a promising trajectory as they push to commercialize their leading tidal energy technology. With strategic investments and a robust technological foundation, Minesto is positioning itself as a frontrunner in the rapidly evolving market of renewable ocean energy, ready to tackle the challenges of sustainability and climate change head-on.

In conclusion, Minesto’s Year-End Report for 2024 not only reflects substantial advancements in tidal energy production but also sets the stage for future successes. As the company aims to implement its innovative energy solutions, it remains committed to its vision of a sustainable energy future, empowering communities and contributing positively to the global energy transition.