Emeryville, California USA, February 7, 2018 - Aker Solutions has invested in Principle Power Inc., the company announced today, forming an alliance that brings Aker Solutions’ offshore oil and gas field engineering expertise into the rapidly growing global offshore wind market.
With this transaction, together with the investments of the company’s existing major shareholders (EDP Ventures, Repsol, ASM Industries, and Portugal Ventures) over the last 18 months, Principle Power has raised its series B equity round of $13 million, which can be increased to $17 million at investors’ discretion. This round is a clear demonstration of the investors’ commitment and ongoing confidence in the company’s business plan and growing track record of success.
Aker Solutions has extensive experience developing offshore oil and gas fields, with particular capabilities in floating facilities. The partnership will help convey Principle Power’s business model and WindFloat technology to the large-scale commercial and industrialization stage globally.
“We see a major opportunity in offshore floating wind where demand is growing in the transition to a low-carbon future,” said Aker Solutions Chief Executive Officer Luis Araujo. “Combining our capabilities with Principle Power’s technology will help advance floating solutions for offshore wind, reducing costs and risks for customers and spurring further growth in the sector.”
“We are very excited about this partnership, which greatly strengthens our leading market position and solidifies our business model across the full life-cycle, from development, engineering, and construction to project operations, at a time when the path to commercial deployment of floating wind is coming firmly into focus globally. Aker Solutions will help accelerate the wider development of the deep water offshore wind industry, bringing major credibility through its experience, expertise and financial strength”, Principle Power CEO, João Metelo said.
Principle Power’s WindFloat foundation allows offshore wind projects to be sited in locations with the most abundant wind resource, independent of water depth, while introducing new methodologies for installation and O&M that reduce risk, cost, and environmental impact.
Following the successful conclusion of the 5-year WindFloat 1 commercial life-cycle demonstration in 2016, Principle Power is now executing several projects ranging between 25-50 MW each in Asia and Europe. These near-term projects prove the bankability of the floating wind industry, while Principle Power develops its global multi-GW commercial pipeline. The partnership between Principle Power and Aker Solutions will help accelerate and crystalize this project pipeline.
Aker Solutions purchased an initial 5 percent stake in Principle Power and will increase this to 10 percent by the end of this year. It has the option to increase ownership further at a later stage. The companies are not disclosing the value of the transaction.