The initiative aims to deliver a reliable, baseload power solution for remote, off-grid locations in the Faroe Islands. By integrating Minesto’s tidal power technology with Capture Energy’s microgrid management systems, the project seeks to provide scalable, renewable energy solutions for island communities. SEV will contribute as a microgrid user and support feasibility studies for future commercial installations, while IVL will evaluate the system’s environmental impact.
“The global multibillion-Euro microgrid business is a vital parallel track to build-out of larger Dragon Farms (multimegawatt arrays) based on the same Dragon-class systems,” said Minesto CEO Martin Edlund. “This new partnership with Capture Energy makes it possible for us together to offer turn-key microgrid tidal power generation to local customers in need of renewable base-load energy.”
The project targets the growing microgrid market, estimated at €300 billion ($352 billion), spanning small-scale kilowatt to large multi-megawatt installations. “The microgrid business has significant strategic value for Minesto,” Edlund added. “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 Faroe Islands face energy challenges typical of remote regions, including reliance on imported fossil fuels and vulnerability to price fluctuations. Minesto aims to harness the region’s untapped tidal energy potential to provide a stable, sustainable power source. “This award from the Swedish Energy Agency adds vital financial support and recognition to Minesto’s commercial agenda,” Edlund stated.
Recently, Minesto secured a SEK 22 million loan from Fenja Capital to support its operations and business development. The company’s Dragon 12 tidal energy device, deployed in Vestmannasund, Faroe Islands, achieved a 25% increase in power output after a tether upgrade, reinforcing the technology’s potential for the microgrid project.
This initiative positions Minesto to address global energy demands while supporting the Faroe Islands’ transition to clean, reliable energy, leveraging local tidal resources and strategic partnerships.
