GOTHENBURG, Sweden, June 27, 2025 /PRNewswire/ -- Minesto, leading ocean energy developer, is heading a consortium of four that has been awarded a total of 25 MSEK grant funding from Swedish Energy Agency to build a complete microgrid installation in the Faroe Islands. Minesto collaborates with microgrid technology provider Capture Energy, Faroese utility company Sev and IVL Swedish Environmental Research Institute to demonstrate a unique tidal-based microgrid solution that provides baseload power.
The project is built on a partnership with technology leader in microgrid management Capture Energy. By integrating Minesto's tidal power plants with Capture Energy's microgrid capability, a significant global market for autonomous power plants and island-mode grid can be accessed. Minesto's existing customer Sev will play a key role in the project as an advanced user of microgrids and on feasibility work related to local commercial installations to come. IVL Swedish Environmental Research Institute, will provide expert analysis on the environmental footprint of the solution.
The total consortium project budget over two years is 56 MSEK, whereof 25 MSEK is grant funding from Swedish Energy Agency.
The project will deliver a complete product offer for a microgrid installation with integrated battery storage to offer a stand-alone base-load power plant to an island mode user. The microgrid offer addresses the global market for clean, reliable, and affordable renewable energy for remote and off-grid customers that are currently dependent on fossil fuels or have a shortage of electricity supply.
A complete microgrid installation:
- The microgrid system will be built, commissioned and operated at Minesto's current production site in Vestmanna based-on existing infrastructure and environmental permits.
- The Minesto tidal power plant used in the project will be an upgraded and customized Dragon-class tidal power plant.
- Non-grid connected islands in the Faroes are the first targets for commercial deployment, the project includes installation preparations such as site assessment and environmental risk assessments.
The project starts in August and will deliver a complete microgrid in 2026.
"The global multibillion-Euro microgrid business is a vital parallel track to build-out of larger Dragon Farms (multimegawatt arrays) based on the same Dragon-class systems. This new partnership with Capture Energy makes it possible for us together to offer turn-key microgrid tidal power generation to local customers in need of renewable base-load energy," said Dr Martin Edlund, CEO of Minesto.
The microgrid market - a strategic market for Minesto
The total addressable microgrid market for tidal powerplants is estimated at 300 billion EUR. The market spans across small kW installations to multimegawatt installations. Minesto will be able to offer its tidal energy kites for large arrays also into this area without modifications, thus contributing to volumes and step-in business opportunities.
"The microgrid business has significant strategic value for Minesto. It is in itself a substantial global market and it also offers market entry projects with new commercial partners to create confidence in our unique technology and to speed up collection of local data for environmental permitting and certification," said Dr Martin Edlund, CEO of Minesto.
The Faroe Islands, like many remote island communities, face unique challenges in energy production and consumption. The islands are dependent on imported fossil fuels, making them vulnerable to price fluctuations and supply disruptions. At the same time, the islands possess vast untapped marine energy resources, especially tidal energy, that could offer a sustainable and locally sourced solution to meet growing energy demands.
"This award from the Swedish Energy Agency adds vital financial support and recognition to Minesto's commercial agenda," Martin Edlund concludes.
For additional information please contact:
Cecilia Sernhage, Chief Communications Officer
+46 (0)735 23 71 58
ir@minesto.com
The information in this press release is such that Minesto AB (publ) shall announce publicly according to the EU Regulation No 596/2014 on market abuse (MAR). The information was submitted for publication, through the agency of the contact person set out above, at 14:55 CEST on 27 June 2025.
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