Green energy startup Mocean Energy has secured major new investment to accelerate the development of its wave energy tech.
The Edinburgh-based startup has raised £612,000 of seed funding, as well as £250,000 from Innovate UK – to advance the design, adoption and deployment of its Blue Star wave machine in the oil and gas sector.
Led by Equity Gap, the funding round includes investment by Old College Capital, the University of Edinburgh’s in-house venture capital fund, as well as the Scottish Investment Bank.
The equity funding also unlocks a further £250,000 from Innovate UK, the UK’s innovation agency.
Mocean Energy Managing Director Cameron McNatt commented: “The equity funding is a tremendous boost and underscores our ambition to deliver a commercial product.
“As well as supporting our technology development pathway, this will allow us to create two new full-time posts which will bring an increased focus on finding the right kind of industry partners to drive our commercialisation goals.”
McNatt added: “The Innovate UK grant will enable us to advance our engineering design, including a new power take-off, moorings and umbilical, and will deliver additional grant support to our project partners Newcastle University’s Electrical Power Research Group and Rosyth-based electronics-specialists Supply Design.”
The funding boost will also enable Mocean Energy to bring on three new non-executive board members, each of whom brings a ‘wealth of experience’ to the firm, McNatt said.
Fraser Lusty, Director, Equity Gap said: “Mocean Energy has an exciting technology backed by some very sound science and ideally placed to help the oil and gas sector decarbonise its operations, with other worldwide applications to follow.
“This funding allows them to broaden their team and seek well-aligned commercial partners who can bring offshore experience to accelerate their ambitious plans.”
Last year, Mocean Energy secured £3.3 million from Wave Energy Scotland to build and test a half-scale version of their technology at sea.
The device is currently being completed at AJS Fabrication at Cowdenbeath in Fife.
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Kerry Sharp, Director of the Scottish Investment Bank said: “Bold and ambitious low carbon technology companies like Mocean Energy are fundamental to Scotland’s transition to a net-zero emission economy.
“This latest injection of funding, alongside the significant Innovate UK funding, will allow the team at Mocean to move ever closer to fully commercialising their ground-breaking wave power technology.”
Earlier this year Mocean Energy announced a pilot project with the Oil and Gas Technology Centre (OGTC), oil major Chrysaor and subsea specialists EC-OG and Modus to study the potential to use their Blue Star prototype to power a subsea battery and a remote underwater vehicle.