Orbital Marine Power secures additional UK tidal energy contract

Scottish engineering firm Orbital Marine Power successfully secured a second substantial Contract for Difference (CfD) from the United Kingdom government in London on September 3, 2024, to accelerate the deployment of its pioneering tidal stream energy technology. This latest procurement, granted under the UK's sixth allocation round (AR6), ensures a guaranteed price for the electricity generated by the company's floating turbines, providing the financial stability necessary to scale up renewable energy production in the North Sea. The contract serves as a critical component of the UK’s broader strategy to diversify its green energy portfolio beyond wind and solar by harnessing the predictable power of the ocean's tides. The agreement will facilitate the expansion of Orbital’s projects at the European Marine Energy Centre (EMEC) in Orkney, where the company operates the O2, the world’s most powerful tidal turbine. This specific contract provides Orbital with 6 megawatts (MW) of additional capacity, reinforcing the firm’s position as a global leader in the marine energy sector. By securing this long-term revenue stream, the company can attract further private investment and drive down the levelized cost of tidal energy through serial production and technological refinement. Industry experts view this development as a significant milestone for the British maritime supply chain and the nation's 2050 net-zero targets. Unlike intermittent solar or wind power, tidal energy offers a highly predictable generation profile, which simplifies grid management and enhances energy security. Orbital Marine Power’s success in the latest auction demonstrates the growing maturity of tidal stream technology and its transition from experimental prototypes to a commercially viable industrial sector capable of supporting thousands of high-skilled jobs in coastal communities.