Minesto and SEV have renewed and expanded the collaboration agreement outlining respective roles and responsibilities related to tidal energy build out in the Faroe Islands, including the ongoing electricity production in Vestmannasund and the first large scale tidal array in Hestfjord. An important add-on to the extended agreement stipulates the exclusive nature of the collaboration regarding the Hestfjord site development and build-out. This aspect facilitates and supports the ongoing work to create an attractive investment and the set-up of a Special Purpose Vehicle (SPV) to funnel project investments, Power Purchase Agreement (PPA), potential public funding (e.g., EU) and other assets.

The agreement also outlines the expanded operation at the existing Vestmanna production site. Minesto recently completed the Dragon 4 site with a second subsea foundation and additional electrical infrastructure. Installation work onshore for the 1.2 MW Dragon 12 is performed in parallel.

The collaboration is based on sharing of production and performance data from ongoing operations as well as in-depth analysis of site characteristics of the existing and planned site locations for joint business case assessments.