Orecon has developed the MRC (Multi Resonant Chambers) wave energy device based on the long established and favoured Oscillating Water Column principle, which is considered to be the most effective method of wave energy conversion.
Despite having won through to the final round of the €24 million Marine Renewables Proving Fund grant scheme (worth up to €6.6 million), a pledge by Carbon Trust Ventures to match fund third party investors, and UK and US patents for its design, Orecon has seen its venture capital funders withdraw their support earlier this year in the midst of the recession. “I thought that after years of struggling for funding we had weathered the worst that the financial markets could throw at us,” said Orecon CEO, David Crisp.
As a result, the company is desperately looking for new investors if it is to avoid a bleak Christmas and closure in the New Year. “We now find ourselves in urgent need of new investment. Whilst we recognise the difficult economic times it is vital that industry now steps up its involvement, there is a huge commercial opportunity here for someone willing to step in now. We have the design, the site, full government support and a crack team, but time is short. Without investment we will have to close the doors at the end of January.”
Added value
A major advantage of the fully patented MRC is that it separates the power takeoff system from the direct impact of the waves. This is not possible with the majority of wave devices where the complete system is exposed to the direct onslaught of the sea. Orecon see simplicity and survival as the key to success and therefore designed the MRC to meet the requirements of the marine classification authority DNV under their rules OSS-312.
Whilst the government has been much criticised for failing the marine energy industry through lack of appropriate funding, the UK’s Department for Energy and Climate Change (DECC) has recognised the importance of marine renewables and is rapidly taking steps to remedy the situation. The €24 million Marine Renewables Proving Fund announced in September this year fills a funding gap that existed for companies wanting to deploy a first prototype. The Marine Action Plan now being executed in partnership with industry is taking a broad look at the situation to identify what government can do to help. David Crisp said “I have been impressed with the intent of DECC, they really seem to be on the case and they have already shortlisted Orecon for MRPF investment”.
Reaching all its milestones
Orecon’s progress since it secured venture capital funding in February 2008 has been impressive, building a team of 10 highly experienced marine engineers to continue the development of the technology to its current level. The MRC design is now complete and a shipyard has been selected to begin construction in the New Year. Orecon has also secured a berth at the South West RDA’s Wave Hub facility enabling installation of the first MRC in 2011.
Orecon has won plaudits from the marine energy industry at large along with awards from the Carbon Trust, DTI, SWRDA and BERR. Orecon’s Multi Resonant Chamber (MRC) 1.5 MW device uses Oscillating Water Column (OWC) principles and is recognised by utilities as showing true potential as a commercial scale device that is both simple and able to provide high yields and reliability.
Orecon has signed an agreement to supply Portuguese developer Eneolica with three MRC units which comes into effect once the first device has been deployed. Eneolica’s Project Director, Filipe Aguiara said: “We have been working with Orecon over the last year and are really excited by the technology that we believe can deliver an acceptable return even on a small scale array.”
Despite all its hard work and a potential market of over €1 billion for the companies who can stay in the race, all Orecon’s achievements to date could come to nothing unless Santa can deliver a timely gift of much needed funding.
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