Administrators seek buyer for Tidal Energy Ltd

The £16m DeltaStream project uses tidal power to provide renewable electricity

A buyer is being sought for a tidal energy company based in south Wales.

Tidal Energy Ltd (TEL) has gone into administration less than a year after developing and testing a 400KW turbine in Pembrokeshire, known as DeltaStream.

The administrators said "economic and political uncertainty" has had a significant impact on the business.

TEL's director Chris Williams said they were "confident" about the future prospects."

The company was set up by a team of marine engineering and renewable energy experts in 2001 and has offices in Cardiff and Pembroke Dock.

The project received grants including from the Welsh Government and Europe

The turbine was placed at Wales' first tidal energy site at Ramsey Sound, off St Davids, in December 2015.

Mr Williams said: "The full turbine characteristics have been tested and verified, and we also possess a wealth of data and information that makes the whole operation, including the turbine and the Ramsey Sound site an attractive proposition to potential partners."

"Unfortunately, market forces have meant we have struggled financially," he added, but they were "confident about future prospects".

Steve Wade and David Hill from Begbies Traynor were appointed as joint administrators on 17 October and said "key staff have been retained" to continue TEL's operations while a buyer is sought.

The company had employed five people, two of whom have been made redundant.

Mr Wade added: "We hope that by working closely with the board of directors and government agencies we can attract potential purchasers to emerge from a variety of different sources."

If no buyer can be found, a contingency plan is in place which would see the turbine removed.

David Jones, project director at Marine Energy Pembrokeshire, an umbrella body trying to promote the area as a "centre of excellence" for sustainable marine energy generation, said he was disappointed.

He added: "It highlights the challenges of being at the forefront of a nascent sector.

"In the short-term it is important to work with others to ensure that the skills and knowledge of the TEL team are not lost from the area and their experience can assist other companies who are locating in Pembrokeshire."