A FRENCH naval submarine and nuclear technology group has paid €14 million for a stake in Irish tidal energy developer Openhydro.
Openhydro, which designs and manufactures turbines for converting tidal power to electricity, said yesterday that DCNS, a French state-owned specialist in naval defence and nuclear energy systems, is taking an 8 per cent stake in the Irish company for €14 million. The deal values Openhydro, which is still in the development phase of its business, at €175 million.
DCNS is the second new investor that Openhydro has attracted in as many weeks. It recently signed a deal with State-owned Bord Gáis, which plans to invest €2 million in the company. The two firms plan to develop a tidal farm off the west coast.
Over the last year, Openhydro has raised €15.4 million from new and existing investors.
Its backers include the troubled diversified investment group One51, which has stakes in a number of green energy and waste management companies.
Openhydro has yet to commercialise its technology, but its turbines have successfully generated power and delivered it to national grids in a number of test centres.
DCNS is one of the world’s leading designers of submarines, underwater weapons, naval vessels and other defence systems. It is also involved in the development of technology for nuclear energy. It employs 12,000 people and has revenues of €2.4 billion.
The company is investing in Openhydro through its marine renewable energy unit. DCNS and Openhydro have been working together over the last year on the development of a tidal energy farm off the Breton coast.
Openhydro’s chairman, Brendan Gilmore, said yesterday that the proposed DCNS investment, which the French government has yet to approve, was a positive development.
“The directors together with our major shareholders believe that this investment supports and enhances Openhydro’s development plans and are unanimously recommending its acceptance,” Mr Gilmore said.
