Ocean energy company Minesto is heading a four-member consortium that has been awarded 25 million Swedish Kroners (USD$2.63 million) grant funding from Swedish Energy Agency to build a complete microgrid installation in the Faroe Islands.
Minesto, with microgrid technology provider Capture Energy, Faroese utility company Sev and IVL Swedish Environmental Research Institute aim to demonstrate a unique tidal-based microgrid solution that provides baseload power.
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 ocean energy resources, especially tidal energy, that could offer a sustainable and locally sourced solution to meet growing energy demands.
By integrating Minesto’s tidal power plants with Capture Energy’s microgrid capability, the partners aim to access a significant global market for autonomous power plants and island-mode grid. Minesto’s existing customer Sev will play a key role as an advanced user of microgrids and on feasibility work related to future local commercial installations. 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 USD$5.9 million of which the $2.63 is grant funding from the Swedish Energy Agency.
“The microgrid business has significant strategic value for Minesto,” said Dr. Martin Edlund, CEO of 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.”
The project aims to deliver a complete microgrid installation with integrated battery storage to offer a stand-alone base-load power plant to an island mode user. The project starts in August and is expected to be completed in 2026.
