Minesto (MINEST) CMD 2024 summary

Market opportunity and industry context

• Global energy transition is accelerating, requiring a massive increase in renewable energy generation by 2050, with a focus on solutions that address supply-demand mismatches and system-level costs.

• Ocean energy, particularly tidal, is positioned as a significant untapped resource, with Minesto's technology offering a lower cost curve and broader applicability than first-generation systems.

• Market potential is estimated at hundreds of billions of euros, with ongoing third-party validation and mapping efforts, especially in regions like Indonesia and the Faroe Islands.

• Minesto's approach involves detailed, bottom-up market analysis and collaboration with local research institutes to validate resource potential and business cases.

• The company is recognized as a leading ocean energy technology, gaining visibility in global industry and political forums.

Investment case and project development

• The first commercial-scale project is a 10 MW array in Hestfjord, Faroe Islands, leveraging proven technology and real production data to reduce technical risk.

• The investment structure involves a dedicated market company (Drekin), with Minesto supplying technology and services, and local utility SEV providing a premium PPA.

• EUR 30 million is required for the first phase, with plans to expand to all identified sites in the region.

• System design is highly modular and adaptable, allowing for optimization based on local flow conditions and minimizing environmental impact.

• The project aims to demonstrate cost advantages over alternatives, particularly by reducing storage needs and overcapacity investments for the Faroe Islands' net zero ambitions.

Technology and operational advancements

• Minesto's technology is differentiated by its ability to operate in lower flows and deeper waters, with modular design and proven operational flexibility.

• Ongoing optimization includes generator upgrades and wing redesigns to maximize energy capture and match site-specific conditions.

• Environmental monitoring shows minimal impact on marine life, supporting easier permitting and stakeholder acceptance.

• The company has developed in-house engineering capabilities, reducing costs and increasing control over system design and deployment.

• Operational experience in Wales and the Faroes has prepared Minesto to deliver complete, grid-compliant systems without reliance on external test sites.