European Investment Bank Supports Minesto for Tidal Energy Dragon Farm Development

The European Investment Bank (EIB) has recently announced its backing of Minesto, a prominent developer in the ocean energy sector. This partnership revolves around the development of an investment case for a groundbreaking project; the first Tidal Energy Dragon Farm in the European Union. The project underscores a significant step towards expanding renewable energy resources, specifically in harnessing tidal energy from ocean currents.

EIB's Project Development Assistance Program

Minesto has been selected as a beneficiary of the EIB’s Project Development Assistance (PDA) program, which aims to provide comprehensive financial advisory support for innovative renewable energy projects within the EU. As part of this initiative, Minesto will receive in-depth investment advisory assistance free of charge, aimed at enhancing the financial attractiveness and overall viability of its farming project.

This specific investment opportunity revolves around a 10-megawatt Dragon Farm designed to be located at a new site in EU waters. The European Investment Bank's assistance will primarily focus on capital structuring and financial modeling, crucial components for effective fundraising efforts. The goal is to secure €25 million in capital to bolster the project's financial foundation.

Strategic Significance of the Dragon Farm Project

The Dragon Farm strategy aligns with a broader vision of expanding tidal energy capabilities within Europe. By selecting Minesto, the EIB is promoting a pioneering approach to energy production that could drastically reduce carbon emissions while providing a sustainable energy source. The initiative is not only about financial backing; it's also a pivotal step towards achieving the ambitious energy goals set by the European Union.

Minesto's Dragon Farm project is expected to facilitate a shift in how renewable energy is harnessed at sea. Based on Minesto's prior experiences with tidal energy developments in the Faroe Islands and North Wales, the forthcoming Dragon Farm aims to combine innovative technology and environmental sustainability. The new project also seeks to establish significant synergies with existing projects, thus amplifying the overall impact of tidal energy development.

Quotes from Minesto Leadership

Dr. Martin Edlund, CEO of Minesto, expressed deep appreciation for the collaboration with the EIB. He remarked, "Being selected by renewable energy and investment experts at EIB for close collaboration on capitalization of a new Dragon Farm in the EU is of significant value to Minesto. This new project will be added as a distinct investment opportunity in parallel with the Faroe Islands build-out."

His comment highlights the strategic importance of this project, emphasizing the potential growth and synergistic opportunities between different geographical locations poised for renewable energy development.

Looking Ahead

As the European Union continues to push towards a more sustainable energy future, projects like Minesto's Dragon Farm stand at the forefront of the renewable energy revolution. The EIB's support plays a crucial role in propelling Minesto’s innovative solutions to harness ocean energy efficiently.

The future of tidal energy in Europe looks promising, as initiatives such as the Dragon Farm pave the way for cleaner, greener energy solutions that can significantly contribute to the EU’s environmental targets. For stakeholders, investors, and advocates of renewable energy, this development represents a landmark milestone in transitioning to sustainable energy systems throughout Europe.

This groundbreaking partnership not only underscores the EU's commitment to renewable energy but also highlights the significant potential of ocean energy as a clean and sustainable solution for the future of energy.

For further information, please reach out to Minesto's Chief Communications Officer, Cecilia Sernhage.