DCNS, a French naval submarine and nuclear technology group, has paid €14 million for a stake in the Irish tidal energy developer OpenHydro.
Paris-based DCNS, a state-owned specialist in naval defence and nuclear energy systems, is taking an eight per cent stake in OpenHydro for €14 million, valuing the Irish company at €175 million.
OpenHydro designs and manufactures marine turbines to generate renewable energy from tidal streams. The company has yet to commercialise its technology, but its turbines have already generated and delivered power to national grids in several test centres.
Over the last year, OpenHydro has raised €15.4 million from new and existing investors.
DCNS is buying the stake through its marine renewable energy unit. The two companies have already worked together, having spent the last 12 months developing a tidal energy farm off the Côtes d’Armor coast in Brittany for Électricité de France.
Commenting, Frédéric Le Lidec, director of the Marine Renewable Energy Incubator at DCNS, said: “DCNS will support OpenHydro to promote and construct tidal turbine farms by making available technical and industrial resources. Marine renewable energy is an integral part of the Group’s strategy and offers significant opportunities for long-term growth.”
Brendan Gilmore, chairman of OpenHydro, added: “This is a very positive development for OpenHydro. DCNS has a tremendous heritage of working in the marine environment and is one of the world’s foremost marine engineering companies. The Directors together with our major Shareholders believe that this investment supports and enhances OpenHydro’s development plans and are unanimously recommending its acceptance.”
DCNS is one of the world’s leading designers of submarines, underwater weapons, naval vessels and other defence systems. It employs 12,000 people and has revenues of €2.4 billion.
Dublin-based OpenHydro has a project portfolio spanning the US, Canada, France, Scotland and the UK’s Channel Islands, with utility partners including EDF, Nova Scotia Power and SSE Renewables.
DCNS’s investment is subject to approval by the French government.
