Danish company Floating Power Plant (FPP) has secured €17.65 million in R&D tax credits for an offshore floating wind and wave project off the coast of the Canary Islands.
The R&D tax credit agreement will help finance the demonstrator project at the Oceanic Platform of the Canary Islands (PLOCAN) which is currently in development.
The initial three years of anticipated expenses associated with FPP’s demonstrator project have been approved by the Spanish Tax Agency as qualifying for the country’s R&D tax credit programme, according to FPP.
Chris McConville , FPP’s general manager, said: “ This is a major milestone in the realisation of the project, for which design and development are well under way. The security of knowing that the planned project is eligible for this support allows us to progress with confidence towards the final investment decision planned for later this year”.
The demonstrator will have a total power capacity of 5MW from a combination of wind and wave power and is expected to be in operation for up to 10 years.
As well as validating the performance of the unique hybrid system, the FPP’s Canarias project will provide a center for future developments, such as trialing new sensors, control algorithms or materials, prior to their use on commercial unit.
The project will also receive revenue from the power generated, which will be delivered to the grid in Gran Canaria.
“The project forms a key part of FPP’s continued growth strategy, providing the bankability needed to realize the significant commercial pipeline under development.
“We want to thank the innovation consultant Incotec, who have helped us secure one of the largest ever binding R&D tax credit agreements”, McConville concluded.