Siemens expands marine current turbine business

Siemens is increasing its stake in Britain’s Marine Current Turbines Ltd. to 45 percent. Michael Axmann, CFO of the newly founded Solar & Hydro Division within Siemens’ Energy Sector said, “We will actively shape the commercialization process of innovative marine current power plants.” Effective October 1, 2011, Siemens realigned its renewables business into two independent units.

Andrew Tyler, CEO of MCT, said: “We are about to approach investors to secure funding for our first two tidal array projects.”

MCT plans to present two Project Investment Prospectuses to the market in November for the 8-megawatt (MW) Kyle Rhea project in Scotland and the 10-MW Anglesey Skerries project in Wales. For both projects, applications for lease from The Crown Estate have already been approved.

Marine current turbines, that generate electricity by utilizing tidal current flows, are part of Siemens’ Environmental Portfolio. In fiscal 2010, revenue from the Portfolio totaled about EUR28 billion.

Ocean power is emerging with strong growth rates driven by global CO2 reduction commitments. Until 2020, experts anticipate double-digit growth rates for the ocean power business. Based on further estimates the global potential for power generation using tidal power plants is 800 terawatt-hours (TWh) per annum, equivalent to 25 percent above the total power demand in Germany and 3-4 percent of total power consumption worldwide.