A world-leading renewables firm that has received more than £15 million of funding from the Scottish Government has entered administration, placing 56 jobs at risk.
Edinburgh-based Pelamis Wave Power announced the move yesterday, with directors saying they have been unable to secure much-needed additional finance.
The firm, recognised as a key player in the wave renewable sector, was the first company in the world to export electricity from an offshore wave energy converter to an onshore grid network.
Hailed for its innovation by Alex Salmond when he was First Minister, the firm also supplied and commissioned the world’s first multiple machine wave farm.
Scottish Enterprise has given £12.9m to Pelamis since 1998 in the form of grants, equity and loans, while the company has also received £2.47m from the Government’s Marine Renewables Commercialisation Fund.
A statement from the firm said: “The directors of Pelamis regret to announce they have been unable to secure the additional funding required for further development of the company’s market leading wave energy technology.
“As a result the board has reluctantly moved to appoint an administrator to assess the options for securing the future for the business and employees of Pelamis.”
The firm said it was dedicated to the success of its “revolutionary technology” and was committed to working with administrators to find a way forward.
In July last year, energy giant E.On pulled out of the Pelamis wave power research project in Orkney over concerns that development of the technology has been too slow.
It was hoped the wave energy converter at the European Marine Energy Centre in Stromness would lead to 500 homes being powered, but doubts were cast over the viability of the scheme without E.On’s involvement.