Fortum Buys Minority Stake in Finnish Wave-Power Developer Wello

Sept. 1 (Bloomberg) -- Fortum Oyj, the Finnish utility, bought a minority stake in Wello Oy, a developer of wave-power technology.

The utility purchased a 13.6 percent stake in the company that’s developing systems that harness the power of waves to generate electricity, Espoo, Finland-based Fortum said today in a statement on its website. It didn’t disclose the transaction value.

“This is an excellent example of a small company partnering with a big company, which can significantly speed up the development of new technology into a commercial product,” Aki Luukkainen, chief executive officer of Espoo-based Wello, said in the statement.

As yet there are no commercial wave-power facilities operating anywhere in the world with devices still being tested and scaled-up. Bloomberg New Energy Finance last month revised down its 2020 capacity forecast for the industry by as much as 72 percent to just 21 megawatts, saying development is longer and costing more than expected.

To contact the reporter on this story: Louise Downing in London at ldowning4@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net Ana Monteiro, Indranil Ghosh