The collaboration includes Minesto, Capture Energy (a microgrid technology firm), SEV (the Faroese utility), and IVL Swedish Environmental Research Institute. The initiative aims to establish a standalone tidal energy system to provide reliable baseload power for remote or off-grid areas. The microgrid will be installed at Minesto’s existing site in Vestmanna, utilizing an enhanced version of its Dragon-class tidal power plant. Capture Energy will provide control systems for grid integration, while IVL will evaluate the system’s environmental impact.
“This 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. 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,” said Dr. Martin Edlund, CEO of Minesto.
The project focuses on non-grid-connected islands in the Faroes as primary deployment sites. It includes site assessments and environmental risk evaluations to support installation planning. The microgrid will incorporate battery storage to offer a complete off-grid solution, aiming to replace diesel-based and other fossil fuel-dependent systems in remote locations.
Minesto sees the microgrid market as a significant opportunity, estimating its total addressable value at 300 billion EUR, covering small-scale to multi-megawatt installations. “The microgrid business has significant strategic value for 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,” Edlund said.
The Faroe Islands face challenges with high reliance on imported fossil fuels, compounded by price volatility and supply uncertainties. The region’s strong tidal energy potential makes it an ideal location for this project. “This award from the Swedish Energy Agency adds vital financial support and recognition to Minesto’s commercial agenda,” Edlund added.
The initiative is expected to demonstrate the viability of tidal energy as a sustainable power source, contributing to the region’s energy transition and supporting global efforts toward renewable energy adoption.
