A BUYER is being sought for an established Welsh-based tidal stream technology company which has entered administration.

Tidal Energy Ltd, which was set up in 2001, uses technology to harness the power of the sea’s tides to provide a sustainable source of renewable electricity. It operates out of offices in Cardiff and Pembroke Dock.

However, the sector has suffered from economic and political uncertainty in recent times, due to the withdrawal of previous government subsidy promises under the Contracts for Difference regime.

Joint administrators Steve Wade and David Hill – from business rescue and recovery specialist Begbies Traynor – were appointed on October 17.

The administrators have retained key staff to continue the company’s operations and specialist knowledge while a buyer is sought for the business and assets as a going concern.

Tidal Energy Ltd has developed  tidal stream technology called “DeltaStream”, a full scale 400KW turbine that has been successfully tested at Wales’s first tidal energy site at Ramsey Sound, in Pembrokeshire, west Wales.  The Ramsey Sound site is also owned and operated by the company.

Tidal Energy Ltd Director, Chris Williams, said the results of testing the technology made the company a strong commercial prospect.  “The full turbine characteristics have been tested and verified, and we also possess a wealth of data and information that makes the whole operation, including the turbine and the Ramsey Sound site an attractive proposition to potential partners,” said Mr Williams.

“Unfortunately, market forces have meant we have struggled financially, but we are confident that we have the skillsets amongst our people and a tried and tested technology in place that makes us confident about our future prospects. We therefore strongly believe we can help the UK lead the world in the development and application of tidal technology.”

Administrator, Steve Wade, from Begbies Traynor, said the economic climate had had a “significant” impact on the company’s business.

“We hope, however, that by working closely with the board of directors and government agencies we can attract potential purchasers to emerge from a variety of different sources,” he said.

David Jones, Project Director, Marine Energy Pembrokeshire told The Herald: “At a time when this new sector is really gathering momentum in Wales it is disappointing to hear that a Welsh based company, who have played a key role in the sectors development has gone into administration. It highlights the challenges of being at the forefront of a nascent sector.

“In the short-term it is important to work with others to ensure that the skills and knowledge of the TEL team are not lost from the area and their experience can assist other companies who are locating in Pembrokeshire. We need to recognise that the Ramsey project delivered on the funded priorities, which were to develop a technology and site, deploy and grid connect a technology and monitor environmental interactions.

“The project has provided invaluable learning and has assisted local supply chain companies to diversify into a new sector. It is crucial that this experience assists us all moving forward.

“The project site, which is grid connected will be a potentially attractive development opportunity for a number of marine energy companies. Pembrokeshire and Wales with its abundant resource, €100 million of EU Structural Funding for marine energy, world class ports and supply chain capability will continue to attract and support this new important energy sector. Minesto, Marine Power Systems and Wave-tricity have all recently chosen Wales as a destination to develop their technologies and there is real progress being made on our two Demonstration Zones.

He continued: “Combined with the exciting opportunities of tidal range the marine energy sector will continue to play an important role in creating new sustainable low carbon jobs in Wales. The UK is leading the world in this new sector but like many other nascent industries it is inevitable that some technologies will not move beyond an R&D phase.”