Sigma, the Edinburgh-based specialist asset managers, is delighted to announce that its second sustainable energy fund - in which Scottish and Southern Energy plc, the investment vehicles of Sir Tom Hunter and Vincent Tchenguiz, and Bank of Scotland Corporate participated as investors – has made its first investment. The fund, which is called the Sigma Sustainable Energy Fund II (“SSEF II”), has made an investment of £1.5 million in the field of marine energy conversion.
SSEF II is investing £1.5m in Aquamarine Power Limited (“Aquamarine Power”), a newly formed company which has been created to acquire two companies, the wave energy conversion business (Aquamarine Power Ltd) and the tidal turbine developer (Renewable Technology Ventures Ltd, a subsidiary of Scottish and Southern Energy plc). Aquamarine Power will be jointly owned with Scottish and Southern Energy plc, which has itself invested £6.3m to support ongoing development.
This joint venture will create one of the leading companies in the marine energy field, and will develop both wave and tidal energy devices. Aquamarine Power plans to be the first to deploy both wave and tidal devices on a commercial scale.
SSEF II currently has funds under management totalling £45m, and remains open to investors until 20 June 2008, with a target of £100m. This investment represents Sigma’s fourth “clean technology” investment since it entered this sector in 2006, with its first fund (the Sigma Sustainable Energies Fund).
Aquamarine Power will continue to work on its near-shore wave energy conversion device, known as Oyster. Oyster is a device which takes wave energy and transmits it via pressurised seawater to a hydro electric conversion unit on land. The business will also carry on the development of an underwater tidal turbine technology, known as Neptune. Allan Thomson, widely considered to be the most experienced wave power developer in the country, who developed the world’s first commercial-scale wave energy plant, will advise Aquamarine Power in his role as a non-executive director of the company.
Commenting on the investment, Mark Hogarth, Investment Director at Sigma, said,
“When we launched our second sustainable energy fund, SSEF II, we attracted very high profile strategic partners, including SSE, which invested £10m in the fund.
“This initial investment represents an exciting development for SSEF II and we are delighted to be working together with SSE and Aquamarine Power on this project which brings market leading technologies together.”
Chief Executive of SSE, Ian Marchant, said:
“We believe this is the first consolidation in the marine energy field and it’s a clear sign that the industry is maturing. The team at Aquamarine Power are inventive and entrepreneurial, yet have significant experience in the marine energy field.
“We believe this is a great fit with what we are doing and is another contribution we can make to tackling climate change, which is one of the most serious issues facing our planet. It will also help position Scotland as a leader in this field.”
Allan Thomson, non-executive director of Aquamarine Power Ltd, said,
“I am very excited about the future of Aquamarine Power and am delighted SSE and Sigma have chosen to support the venture. The business combines unrivalled expertise in wave energy with the finest engineering skills and the track record of a successful FTSE 100 company. With this track record, we believe we can surge ahead in marine energy technology.”
Enquiries
Sigma Capital Group plc
Mark Hogarth, Investment Director/Graham Barnet, Chief Executive
T: 0131 220 9444
Biddicks
Katie Tzouliadis/ Sophie Lane
T: 020 7448 1000
Arbuthnot Securities
Tom Griffiths/ Neil Kirton
T: 020 7012 2000
Company website: www.sigmacapital.co.uk