Public funding for Ocean Energy reached "unprecedented levels" in 2023

I was recently asked whether ocean energy - and in particular, tidal stream and wave energy - was attracting much investment these days. The answer to that question is a resounding “yes”, both here in the UK and elsewhere.

In a recently published report covering stats and trends in Ocean energy, Ocean Energy Europe highlights public and private investment in the tidal and wave energy sectors in 2023.

In Europe, public funding for ocean energy deployments rose to the unprecedented level of €195 million. In the UK, the current government earmarked an annual investment of £30 million for tidal stream via the Contracts for Difference scheme. France has provided €65 million in funding to a tidal stream project led by HydroQuest. And in Spain, €240 million has been awarded for the development of testing infrastructures and marine renewable technologies, including €12.2 million for wave energy projects. Further afield, the US government has invested $120 million to boost ocean energy technologies.

European grant support in 2023 included €40M from Horizon Europe to the EURO-TIDES and SEASTAR tidal farm projects, and €65 million from the EU Innovation Fund for two wave energy projects, SAOIRSE and SEAWORTHY. EuropeWave (supported by the Scottish and Basque governments and the European Commission) granted €13.4 million to three wave technology developers.

Private investment in this sector has not lagged behind either. In fact, Ocean Energy Europe's report discloses a 75% jump in officially announced deals, compared to 2022. Some of the innovators attracting private investment in 2023 included tidal power firm Minesto, which secured €10.7 million through a rights share issue; wave power company Mocean Energy, which secured €2.6 million in new equity; and Havkraft, another wave energy innovator, which obtained €1.3 million from a capital campaign. Hydroquest, a tidal energy firm, collected €1.5 million through a crowdfunding campaign; and wave power developer Wavepiston secured €1.4 million from crowdfunding plus private investors.

For a wider view of the ocean energy sector, take a look at the 2023 report from Ocean Energy Systems (OES), an intergovernmental collaboration between countries. The report highlights developments and funding in its 22 active member countries, and confirms that:

“Globally, policies are being developed to foster the growth of the ocean energy sector. These policies range from creating comprehensive support programs and regulatory frameworks to streamline licensing processes, setting deployment targets, and providing financial backing for research and development.”

So to re-cap - yes, the ocean energy sector is attracting investment, both public and private, around the world. And with Allocation Round 6 of the UK's Contracts for Difference Scheme due in late July 2024, ocean energy innovators - at least in the tidal stream sector - will hopefully receive a further boost.