A welsh tidal energy company is seeking a £100,000 investment with 1.5 per cent equity swap in the Chinese market.
Marine Power Systems (MPS) Ltd is a Swansea-based tidal energy company established for developing and promoting the WaveSub wave energy converter. WaveSub is the sole technology product invented by MPS’s founders Dr Gareth Stockman and Dr Graham Foster, which aims to generate electricity from wave with low cost. The biggest advantage of WaveSub is its high efficiency in terms of translation, construction and installation.
“WaveSub can follow the track of the wave. Parameter configuration can be easily operated even when it is floating. To optimize the efficiency of power generation, the depth can be changed to avoid giant waves. And the most outstanding part about WaveSub is the simple design and low cost,” said Dr Stockman.
The 1/30 model has already passed liquid position test and marine power test. MPS has already reached its target of £2 million private equity investment. They will have another £1 million investment from the Welsh government.
“The project of this investment corresponds Enterprise Investment Scheme (EIS) with respect to the related tax incentives and subsidies. I’m sure it is attractive to the Chinese investors,” said Sun Qing, a spokesman of Welsh government in Shanghai.
MPS believed that WaveSub can be developed on the commercial stage with one more equity financing.
“The investment open to the Chinese market at this time will be used for producing 1/4 prototype and marine power test. If it passed the test, we’re sure that it can be developed into full range of commercial development. We hope it can be used in the wave power generation industry in 2018,” said Dr Stockman.
Ren Haoning, a consultant in China Investment consulting agency, estimates the investment is worth doing.
“To generate electricity by wave energy cost least compare to other alternative energy such as solar power, wind power and biomass. Many European countries, for instance France and Britain developed wave power generation at top of the world due to cheap and huge amount of wave resources generated by long coastline and big ocean,” Mr Ren said.
According to the 2014-2018 report by China Investment consulting, the wave resource in China is estimated at 110 million kW and the available power generation will be 21.79 million kW.
“China developed wave power generation since 1950s and makes an achievement in lower cost of production and mature the technique. Investing for MPS will be beneficial for accelerating the process of wave energy development in China,” Mr Ren said.
By Sherry Ye