The European Investment Bank (EIB) has selected Swedish tidal energy developer Minesto for in-depth investment advisory support focused on increasing the financial attractiveness and overall quality of the investment offer for a 10 MW tidal energy array as part of a larger build-out in a selected EU market.
Minesto was selected on a complementary basis under the Project Development Assistance (PDA) program, which offers extensive free-of-charge financial advisory support to a few investment opportunities within the renewable energy sector in the EU.
The company will utilize the advisory support to target the financial closure of the 10 MW Dragon Farm, a first-of-a-kind tidal energy array to be located at a selected site within the EU. The tidal energy array is said to be Minesto’s first project within the EU, building on years of experience from site development and tidal energy production in the Faroe Islands and in Wales.
The EIB advisory support focuses on increasing the financial attractiveness and overall quality of the investment offer, aiming to raise €25 million in capital.
The advisory will include capital structuring and financial modelling to facilitate fundraising. The program begins immediately.
“Being selected by renewable energy and investment experts at EIB for close collaboration on capitalization of a new Dragon Farm in the EU is of significant value to Minesto. This new project will be added as a distinct investment opportunity in parallel with the Faroe Islands build-out, creating clear synergies between the initiatives and significantly increasing the short-term expansion opportunity for our world leading tidal technology,” said Martin Edlund , CEO of Minesto.
EIB’s PDA program is funded by the European Commission with the purpose of increasing investment attractiveness of the top tier of innovative decarbonization projects in the EU, suitable for the Clean Industrial Deal that consists of a range of funding mechanisms, including the Innovation Fund. On an annual basis, a limited number of projects are offered PDA support across industries and sectors within the EU.