The tidal energy specialist has secured the seven-figure equity investment to further develop its Plat-I platform system currently in use in Nova Scotia.
German-headquartered marine propulsion and renewable energy company Schottel Hydro, which in 2018 merged its tidal energy businesses into SME to become the Scottish firm’s largest shareholder, contributed close to £2.5m in the funding round.
The Scottish Investment Bank (SIB), the investment arm of Scottish Enterprise, committed the remaining £1m on behalf of the Scottish Government’s Energy Investment Fund.
SME conducted initial testing of the Plat-I system in Argyll and Bute last year, before transporting the device to Grand Passage, Nova Scotia, where it generated power for the first time in February.
The funding will help to continue SME’s testing and demonstration programme in preparation for building a larger project at the Fundy Ocean Research Centre for Energy located in Canada’s Bay of Fundy.
Jason Hayman, MD of SME, said: “It is fantastic, and a great testament to the team for all their hard work, to close this funding round.
“Securing new investment from the SIB and commitment from Schottel for our work in Nova Scotia will enable us to take a significant step forward on our renewable energy journey.”
SIB director Kerry Sharp added: “This investment could ultimately see SME further its commercial activity, placing the company at the forefront of the development of tidal energy technologies and further cementing Scotland’s position as a leading player in the global transition to a low-carbon economy.”