Naval Energies has decided to stop investing in tidal energy, a market said to be in the process of closing, and focus on floating offshore wind, as well as ocean thermal energy conversion.
The French company said the gap between the tidal technology and the demand on the market and lack of long-term commercial prospects are forcing it to stop investing in the industry.
Maintaining investments in the current context would have led to consuming resources and ultimately weakening as a global actor in ocean energy, while, on the other hand, floating wind and ocean thermal energy conversion are receiving support from public authorities, said Laurent Schneider-Maunoury, the company’s CEO.
The decision comes after discussions with public and private stakeholders, as well as with the French Environment and Energy Management Agency (ADEME), which, as the company states, only foresees 100 to 150MW of tidal energy to be installed until 2028, i.e. 50 2MW turbines over ten years.
Similarly, the UK decided two years ago not to launch specific tenders and tidal now has to compete with fixed bottom offshore wind, which is impossible due to a different level of technological maturity, while there is also sensitivity to the cost of the technology in Canada, Naval Energies said.
“It is with regret, but also responsibility, that we are taking the decision to stop developing tidal-turbine energy. The deterioration of the market, in France and around the world throughout the recent months, has been reflected in a lack of commercial prospects over the long term. This evolution means that we alone can no longer finance the development of the tidal-turbine activity,” Schneider-Maunoury said.