The Edinburgh-based wave energy developer has called in the administrators to manage the business and seek a sale or investment via the administration process.
Accountancy and business advisory firm BDO LLP has appointed business restructuring partners James Stephen and Graham Newton as joint administrators that will take over the running of Aquamarine Power.
The joint administrators will continue to trade the company with a view to effecting a sale as a going concern, and all 14 employees are being retained, Aquamarine Power’s press release reads.
James Stephen , BDO business restructuring partner, said: “Whilst the company has seen many successes over the last few months, including securing a €800,000 grant from the EU as well as a £2 million contract from Wave Energy Scotland, the economic climate has significantly affected the business.
“The lack of private sector backing to supplement public funding support placed the company under cash flow strain and the directors concluded the best prospect of concluding a transaction was via the protection of administration. The company holds liquid funds which will allow this strategy to be pursued.”
Stephen added the joint administrators are continuing discussions with interested parties who were in discussions with Aquamarine Power prior its going into administration.
Aquamarine Power’s CEO, Paddy O’Kane , said: “Today’s news underscores the financial as well as technical challenge in bringing an entirely new form of energy generation to commercialisation. New private sector funding is required now to deliver our technology roadmap.”
To remind, another UK-based wave energy developer, Pelamis Wave Energy, went into administration late in 2014 due to the inability to secure the additional funding required for further development of the company’s wave energy technology.
Pelamis’ intellectual property, and physical assets were later obtained by Highlands and Islands Enterprise.
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Image: Aquamarine Power