#Sweden #Gothenburg #Minesto #tidal energy #Dragon 4

Minesto AB: Third Quarter Progress Report 2026

Minesto AB, a pioneering company in tidal energy technology, recently released its interim management statement for the period from January 1 to September 30, 2026. This report highlights crucial developments within the company and outlines its roadmap for future endeavors.

Key Developments in Q3 2026

Upgraded Dragon 4 Power Plant

One of the significant milestones reported was the upgrade of the Dragon 4 power plant. With the integration of a new power-take-off (PTO) system, this plant showcased impressive performance, achieving record levels of electricity generation during the summer months in Vestmannasund, Faroe Islands. The new PTO system not only maximizes energy output across different tidal flow cycles but also effectively reduces operational costs, demonstrating Minesto's commitment to enhancing the efficiency of tidal energy production.

Organizational Changes and Efficiency Improvements

In response to the evolving market and to better position itself for commercialization, Minesto has restructured its organizational framework. This includes managing site installations and operations through customer delivery projects, relying on Minesto's proprietary technologies while utilizing local resources. This approach aims to enhance operational flexibility and efficiency.

Award-Winning Campaign

Another exciting update was the recognition of the “Faroe Islands Space Program” campaign at the Cannes Lions International Festival of Creativity 2026. Celebrated for its creativity, this campaign significantly boosted global visibility for Minesto's innovative Dragon technology, garnering over 800 million impressions worldwide.

Future Funding and Project Initiatives

The report also disclosed that Minesto has been selected by the European Commission to enter into Grant Agreement Preparation (GAP). This involves a grant of EUR 20.2 million for the pioneering Euro Dragon Farm project—a world-first 10 MW tidal kite array designated for launch in Ireland. The formalization of this agreement is expected to occur in the first quarter of 2027.

In parallel, Minesto's Board of Directors announced plans for a rights issue approximating SEK 130 million, intended to facilitate investments in its initial commercial Dragon Farms, including those in Hestfjord and the Euro Dragon Farm.

Financial Performance Overview

In terms of financial performance, the operating income for the period was SEK 16.31 million, primarily reflecting capitalized development work. The reported net sales remained unchanged at SEK 0. The company incurred an operating loss of SEK 23.33 million, attributed mainly to the costs associated with technology development and business administration.

Additionally, Minesto reported significant progress in its equity position, with total cash and equivalents at SEK 29.94 million, reflecting prudent management amid ongoing investments in development and technology.

Strategic Collaborations and Market Expansion

Minesto continues to broaden its global reach through strategic partnerships aimed at advancing tidal energy projects. Notably, in the past quarter, Minesto signed a Memorandum of Understanding (MOU) with Morteza Capital to explore tidal energy potential in the Maldives, as well as with Trayen Power for the development of similar initiatives in Chile. Both regions present robust opportunities, considering their favorable tidal resources and forthcoming energy demands.

Joining Global Sustainability Initiatives

Moreover, Minesto's involvement in the Sweden-Indonesia Sustainability Partnership (SISP) underscores its commitment to supporting sustainable energy solutions in emerging markets. This initiative aligns with the company’s objective to contribute meaningfully to the global shift towards renewable energy.

Conclusion

CEO Dr. Martin Edlund expressed confidence in the company's trajectory, noting that the growing demand for reliable renewable energy augurs well for Minesto's unique tidal technology. As the energy transition progresses, Minesto aims to lead the way, establishing itself as a frontrunner in the global ocean energy landscape. The company’s focused approach on technological advancement paired with strategic commercial partnerships lays a strong foundation for future growth and sustainability, promising an exciting outlook for stakeholders and environmental advocates alike.