French tidal energy company Sabella has been placed in a receivership following several months of dealing with financial difficulties.
The company has been placed under the protection of the Quimper court as part of the receivership expected to last for the period of six months, according to the French media reports.
Sabella has around 20 employees and is currently working with the regional and other partners to resolve the situation and secure funding to continue with its operation, the reports state.
The blame is put to the lack of appropriate government policies and route to market for tidal energy industry, causing the investors to pause the financing for companies operating in the sector.
A receivership is a court-appointed tool designed to assist creditors in recovering funds which can also help troubled companies potentially avoid bankruptcy.
Brittany-based company has been founded in 2008, and has since been developing tidal stream turbines, two of which were tested in offshore environment – D03 and D10.
The D10 turbine, rated at 1MW, is currently undergoing third long-term test campaign in the Fromveur Passage, offshore Ushant Island, where it has been supplying electricity to local grid in limited capacity.
Regardless, the turbine managed to generate over 25% of the electricity consumed on Ushant Island on average in September 2023 , thanks to the high-water velocities of the spring tides, and in some instances, over 50% of total power in the island’s energy mix.