International power company Alstom has made its first-ever investment in wave energy with the acquisition of a 40% equity stake in Scottish company AWS Ocean Energy Ltd.

Inverness--based AWS said the investment by Alstom, a global leader in power generation, power transmission and rail infrastructure, would give the company the financial strength to expand its operations and accelerate the development of its AWS- III wave power technology. It is Alstom’s first‐ever investment in the wave energy sector.

Commenting on the deal, Alex Salmond, the First Minister, said:

“This is a hugely significant investment announcement that brings together a pioneering Scottish marine energy developer with one of the world’s leading power generation and transmission companies, which is entering the wave energy market for the first time. It is a strong vote of confidence in the innovation and engineering capabilities of AWS and their partners and underlines the growing strength of Scotland’s renewables industry as we look to harness our unrivalled wave, tidal and wind sources.

“We are determined to provide the optimum environment for the development and deployment of clean energy technology, working with private and public sector partners to forge a truly low carbon economy both in Scotland and further afield. I’m very pleased that the Scottish Government’s enterprise agencies have been able to support AWS as it has developed its technology and business. It is clear that in the global race to harness energy from our seas and oceans, Scotland rules the waves.”

Simon Grey, AWS Ocean Energy’s Chief Executive, said the Alstom investment was a significant boost for AWS Ocean Energy and Scotland's wave energy sector as a whole, giving the company a delivery capability which utility customers would need in order to realise their major wave energy projects in Scotland and elsewhere.

Alstom’s Senior VP of Hydro and Wind, Philippe Cochet, said the Group was "extremely excited" about entering the wave energy market at a pivotal time. The AWS acquisition will form an important part of the strategic development of Alstom’s recently created business activity, Alstom Ocean. Alstom has already reviewed many different technologies and undertaken further detailed analysis with the most promising. He continued:

“ We are absolutely confident that AWS‐III is a technology that perfectly complements our existing ocean activities: tidal energy and offshore wind, while further reinforcing Alstom’s position as a   leading supplier of clean energy solutions.”

Alstom will be a shareholder in AWS Ocean Energy alongside the Shell Technology Ventures Fund 1 (managed by Kenda Capital) and Scottish Enterprise/Scottish Investment Bank.

Lena   Wilson, Chief Executive of Scottish Enterprise, said: 

"AWS‐III  technology is a great example of innovative Scottish energy engineering and this latest investment from Alstom underlines confidence in the company and its technology as a viable future renewable energy source. Scotland's renewables sector is going from strength to strength and we are delighted that both the WATERS grant and our Co- Investment Fund, through the Scottish Investment Bank alongside Shell Technology Ventures, has helped contribute to the company's growth and development."

Alstom's backing will now provide the business with the resource to take the next steps in developing the technology - a full-scale prototype demonstrator of the AWS-III, a multi-MW offshore wave energy generator evolved from the award-winning Archimedes Waveswing ™ technology, first deployed and tested in Portugal in 2004.

AWS, which currently employs 14 people (primarily engineering and research analysts), is now launching a recruitment drive.

A 1/9th scale prototype of the AWS- III was trialled last year (2010) in Scotland’s Loch Ness and the company plans to deploy and test a full size single cell of the AWS-III multi-cell prototype in Scottish waters next year (2012) and are aiming to deploy their first AWS-III in 2013/14.

A single utility-scale AWS-III will be capable of generating up to 2.5 Megawatts (MW) of power. The AWS-III system is a 12-sided floating device which sits on the surface of the ocean and uses the   action of the waves to produce electricity. The rising and falling motion of the waves forces air forward and backwards through a number of air turbines installed inside the device.