Marine energy company Minesto has secured exclusivity over the seabed from The Crown Estate for the world’s first commercial tidal power project in low velocity currents off the coast of Wales.

Minesto will now prepare a consent application for the site near Holyhead Island in Wales prior to the construction of a 10MW marine energy array in 2016, which will supply electricity to approximately 8,000 households and make Wales a world leader in marine energy.

The decision forms part of The Crown Estate’s UK-wide wave and tidal stream leasing round, which saw rights awarded for for five new tidal stream sites across the UK, each with the potential to deliver a project of between 10 and 30 MW capacity.

Minesto plans to start the installation of a 10MW marine energy array in 2016. The Welsh waters hold a potential of several 1000’s of MW, which makes Wales one of the most suitable places in the world for low velocity tidal energy.

Expressing its support for The Crown Estate’s decision, David Aitken, Head of Incubation at The Carbon Trust commented

“The Carbon Trust has provided technical and innovation support to Minesto since 2007. We are now excited to see they have achieved this Agreement for Lease since it opens the path to commercial roll-out of the technology. Minesto’s innovative technology has the potential to significantly expand the UK’s tidal resource, by unlocking lower velocity tidal flows, and lowering the cost of marine energy.”

Wales has 1,200 kilometres of coastline that is very rich in low velocity tidal currents. In addition, Wales has strategically located deep-sea ports and – most importantly – access to the national UK grid. The existing grid capacity reduces the time for commercial roll-out and is likely to make Wales the leading region for marine energy in the UK.

A report commissioned by the Welsh government shows that marine energy could boost the Welsh economy by up to £840m annually after 1GW has been deployed.

“We are extremely excited that we now will have the opportunity to commercialize Deep Green in the low velocity tidal currents off Wales,” said Anders Jansson, CEO of Minesto. “This underpins Minesto’s position as the world leader for energy production from low flow tidal streams and ocean currents. For Wales, it can lead to job creation, increased revenues and a more sustainable energy production. With the Agreement for Lease we will now actively work together with local actors to ensure that Wales becomes a leading region for marine energy.”

Minesto will now further develop the project, which includes in depth environmental studies, detailed seabed mapping, cable routing and commercial activities. The Holyhead Deep site is located approximately seven kilometres from the shore where the water depth is 80-90 meters. The tidal currents are 1.5-2.5m/s. The area has been carefully selected to maintain separation from shipping lanes and to minimise the impact on other sea users.

Minesto’s tidal power plant, called Deep Green, looks like an underwater kite and is based on a fundamentally new principle for electricity generation from tidal and ocean currents. Deep Green is the only known marine power plant to generate electricity from low velocity tidal currents, which greatly enhances the potential for marine energy.

Rob Hastings, Director of Energy and Infrastructure at The Crown Estate said:

“By providing these additional seabed rights we are pleased to be enabling further technology development and commercialisation, which will be critical if the UK is to unlock its significant natural resources for wave and tidal current energy.”