Flumill AS, a Norwegian developer of machines to generate power from tides, is raising 57.5 million kroner ($10 million) to install a unit off the northern coast.
Pareto Securities AS will help raise the funds mainly in Europe, Faervik-based Flumill’s Chief Executive Officer Anders Holm said by phone. The developer is talking to venture arms of utilities, industrial companies and equipment manufacturers, as well as venture capital and private-equity funds, he said.
Flumill will use the money with a grant of the same amount from Enova, Norway’s state clean-technology agency, to develop and install a 2-megawatt machine in the first-quarter of 2014, Holm said. It anticipates commercial orders after that, he said.
Tidal energy companies are seeking investment and expertise from industry as they move closer to bringing their technology to market. Siemens AG, Alstom SA and DCNS SA have bought stakes in developers. A 2-megawatt Flumill system weighs less than 200 metric tons, against as much as 1,500 tons for some competitors.
The company has a unit in Scotland that tested a quarter-scale system at the European Marine Energy Center last year. It views the U.K. as the most mature market because of government policy and is approaching potential partners for tidal sites.
Marine energy in England and Scotland receives some of the highest subsidies in the world, about 207 pounds a megawatt-hour ($317) at current prices. Energy from tides at present costs about $440 a megawatt-hour, compared with $128 a megawatt-hour for coal-fired power, according to Bloomberg estimates.
Flumill is interested in the U.S., France, Japan and China and views South Korea as a “very interesting” market, Holm said. It’s speaking to most of the major utilities with licenses for tidal park developments in Britain and France, while in Asia it’s approaching industrial companies and utilities.