Interest sparks hope for wave energy firm Pelamis

A number of parties have expressed an interest in beleaguered wave power company Pelamis, according to administrators.

Several parties are said to be interested in Pelamis. Picture: PA
Several parties are said to be interested in Pelamis. Picture: PA

A closing date has been announced for offers for the Edinburgh-based business, which went into administration last month after failing to secure enough funding to develop its technology.

Pelamis Wave Power employs more than 50 staff in the design, manufacture and operation of wave energy converters which it has been testing at the European Marine Energy Centre (EMEC) in Orkney.

Joint administrators Blair Nimmo and Gary Fraser of KPMG LLP said those interested in the firm had until 10.30am on Tuesday to submit an offer.

Mr Nimmo, head of restructuring at KPMG in Scotland, said: “We have been encouraged by the level of initial interest in Pelamis and we believe there is the will and desire to see the continuation of the ground-breaking advances the business has made towards renewable energy production.”

If any offers are received it is expected to take some time before a preferred bidder is selected, administrators said.

Energy giant E.ON announced it was pulling out of a partnership with Pelamis at the EMEC in July last year, citing delays in the progress of wave technology.

In another blow to the industry, Edinburgh-based wave energy firm Aquamarine Power said earlier this week it planned to “significantly downsize” its business.

The Scottish Government has announced that a technology development body will be set up to encourage innovation in the wave energy industry.

Wave Energy Scotland will bring the best engineering and academic minds together to work on furthering wave technology, Energy Minister Fergus Ewing said.