Minesto's Half-Year Report 2025: Navigating Challenges in Ocean Renewable Energy

Minesto, a leader in ocean renewable energy technology, has recently published its Half-Year Report for the fiscal year 2025, showcasing notable progress and strategic moves in an ever-evolving green energy landscape. CEO Dr. Martin Edlund expressed a steadfast commitment as the company pushes forward with renewed energy and determination. This report, detailing operations from January to June 2025, signifies both challenges underestimated as well as breakthroughs achieved in various frontline projects.

Operational Highlights

During the second quarter, Minesto has maintained solid operational and testing regimes, particularly in Vestmanna, Faroe Islands. Their flagship energy solution, the Dragon 12 megawatt tidal kite named "Luna," has begun its operation. Following a significant upgrade which led to a longer tether, the Dragon 12 reached a performance pinnacle, allowing for a 25% increase in energy production. This achievement is pivotal for Minesto as it steps closer to commercial deployments of its unique tidal kite technology.

Furthermore, in June, the company secured a loan financing package of SEK 22 million from Fenja Capital, enhancing its operational flexibility in a dynamic business context. This funding, generated at market terms, includes a modest interest rate and is set to be repaid by the end of 2025.

Minesto will also harness a grant of 25 MSEK to establish a tidal energy power plant aimed at offering baseload electricity production for microgrids on the Faroe Islands. The project will involve collaborations with Capture Energy, utility company Sev, and the IVL Swedish Environmental Research Institute to showcase a novel tidal-based microgrid solution.

Financial Overview

In terms of financial performance, Minesto reported operating income for the first half of 2025 totaling SEK 12,234 thousand, down from SEK 13,549 thousand during the same period in 2024. The operating loss, however, improved to SEK -20,502 thousand compared to SEK -23,268 thousand in the previous year, attributed to reduced business development and administrative costs associated with thriving technology advancements.

The total intangible assets climbed to SEK 562,112 thousand, thanks to capitalized development costs that remain crucial for future endeavors. Despite a decrease in cash flow attributed to operational changes and technological investments, the company ended the period with a healthy cash position of SEK 30,241 thousand.

Key Milestones and Future Directions

Following the closure of this reporting period, Minesto undertook a reorganization that has streamlined its operations, resulting in a reduction of fixed costs by around 35%. This restructuring aims at enhancing agility in meeting upcoming commercial projects, including site developments planned for the microgrid upgrades in Vestmanna.

In an engaging international highlight, Minesto participated as part of the Swedish delegation in the World Expo 2025 held in Osaka, Japan. The event not only furthered the visibility of Minesto's capabilities but also fostered collaborations spanning across multiple geographies. In June, Minesto gained media traction at the United Nations Ocean Conference, reaffirming its commitment to the blue economy.

Minesto's ongoing efforts in branding have resulted in historic media exposure during Q2, reaching over 500 million views. Most notably, the company launched an innovative campaign termed