Minesto AB, a closely held developer of marine-energy systems, is receiving 13 million euros ($14 million) from the European Regional Development Fund for its first commercial-scale project, in Wales.
The funds will be used to build a power plant off the port city of Holyhead, in the Irish Sea, and to establish Minesto’s U.K. headquarters in the North Wales region, the Gothenburg, Sweden-based company said in a statement Wednesday.
Minesto’s Deep Green systems are shaped like underwater kites that generate electricity from low-velocity tidal and ocean currents.
Minesto will install the plant’s first 500-kilowatt system as part of an array that will grow to 10 megawatts of capacity by 2019, according to the statement.
The full development will generate enough power for about 8,000 homes. Wales has about 1,200 kilometers (746 miles) of coastline with low-velocity tidal currents, enough to supply as much as 5 percent of the U.K.’s total electricity demand.
“We have extensive raw wave and tidal energy resources along our shorelines, and this is an excellent example of commercial solutions being developed in Wales to help drive our potential to be a world-leader in the marine-energy market,” First Minister Carwyn Jones said in the statement.