Openhydro, the tidal-energy company backed by One51 and Emera, has taken a 20-per cent equity stake in the Channel Islands-based Alderney Renewable Energy.
The deal is understood to be worth between €10 million and €12 million.
Alderney Renewable Energy recently secured a 65-year licence for the generation of wave energy off the island of Alderney. In a statement Openhydro said taking an equity stake was the culmination of three years collaborative surveying work for the development of commercial tidal power farms off Alderney.
Under the agreement OpenHydro turbines are the preferred technology with the company estimating the seas around the island may be able to supply up to 3,000MWs of power that can be harnessed.
The first phase will see the installation of 285 turbines on the seabed, each generating 1MW, over the next five years, subject to planning approval. OpenHydro recently began manufacturing a one-megawatt turbine which is four times bigger than its turbine installed off Orkney. This turbine has been connected to the British national grid.
The Alderney turbines will be connected to the European grid via France once complete.
Brendan Gilmore OpenHydro chairman said the waters around Alderney are one of the world's largest resources of marine energy.
"This resource will deliver security of energy supply and further economic benefits for the residents of Alderney, and will provide Europe with long term carbon free renewable tidal energy," he said.
OpenHydro designs and manufactures turbines at a facility in Greenore, Co Louth. Its turbines are installed below the surface and fixed to the seabed and use tidal currents to drive turbine blades and generate electricity.
Earlier this year Canadian power company Emera paid €10.2 million for a 7 per cent stake in OpenHydro, valuing the company at around €145 million.
One51, the investment vehicle backed by former Iaws chief executive Philip Lynch, holds an 11 per cent stake, worth around €16 million on the basis of the Emera stake.
