Administrators have been appointed to Tidal Energy – less than 12 months after the company developed and tested its 400KW subsea turbine known as DeltaStream.
The Cardiff-based company was set up in 2001 to harness the power of the sea’s tides to provide a sustainable source of renewable electricity.
However, the sector has suffered from economic and political uncertainty in recent times, due to the withdrawal of previous government subsidy promises under the Contracts for Difference regime.
Joint administrators Steve Wade and David Hill – from business rescue and recovery specialist Begbies Traynor – were appointed last week.
But they have retained key staff to continue the company’s operations and specialist knowledge while a buyer is sought for the business and assets as a going concern.
Tidal Energy Ltd has developed tidal stream technology called “DeltaStream”, a £16 million turbine development that has been successfully tested at Wales’s first tidal energy site at Ramsey Sound in Pembrokeshire – a site which is also owned and operated by the company.
Tidal Energy Ltd Director, Chris Williams, said the results of testing the technology made the company a strong commercial prospect and added:
“Unfortunately, market forces have meant we have struggled financially, but we are confident that we have the skillsets amongst our people and a tried and tested technology in place that makes us confident about our future prospects.
“We therefore strongly believe we can help the UK lead the world in the development and application of tidal technology.”