KPMG moves in as Pelamis runs out of money
KPMG was tonight confirmed as administrator to Pelamis Wave Power, one of Scotland’s pioneering renewable energy companies, after it ran out of development capital.
Pelamis is behind a revolutionary device which it has been testing at the European Marine Energy Centre (EMEC) in Orkney and which helped its inventor Richard Yemm to win the Saltire Prize.
But today the Edinburgh-based company said it was regrettably appointing an administrator who would be looking at options for the company and the future of its 56 staff.
It said it had been “unable to secure the additional funding required for further development of the company’s market-leading wave energy technology”.
Among alternative energy sources wave power has always been the toughest to crack and investors have tended to prefer wind power. Even the Green Investment Bank has shied away from the wave sector.
Pelamis said in a statement that the directors and employees remain dedicated to the success of their “revolutionary technology”, and are committed to working with the administrator, the Scottish and UK governments and any future partners to ensure its success.
Blair Nimmo, joint administrator with Gary Fraser, said: “Pelamis has built a global reputation for its innovative and forward-thinking approach to sustainable energy production. It has been recognised for its commercial viability, extensive testing and R&D activity, as well as the intellectual property within the business.
“Unfortunately the business has been unsuccessful in its attempts to secure the necessary funding to allow it continue its development.
“We will do everything we can to seek a buyer who may be able to protect the business, its skilled workforce and see the continuation of the groundbreaking advances Pelamis has made towards renewable energy production.”
The joint administrators are now working with the management to assess the company’s assets.
German power giant E.On last year pulled out of a marine energy research project involving Pelamis, blaming the decision on delays in the development of wave energy technology.
A Scottish government spokesperson tonight said: “This is a sad day for Pelamis and an anxious time for employees and their families.
“Clearly the news that PWP has gone into administration is a matter of real regret. Scottish Enterprise and Scottish Government have been working closely with the company and its shareholders to try and find a way forward and help support the company in its current form.
“The Scottish Government stands ready to engage with the company and we will support affected employees through our initiative for responding to redundancy situations Partnership Action for Continuing Employment (PACE).
“Early stage technologies such as this can be difficult, but the development of wave energy has been blighted by the uncertainty facing the energy sector more widely, following reforms of the UK’s electricity market. Our belief in the future success of wave energy is undiminished.”