Loss-making Edinburgh wave energy firm Aquamarine Power is to freshen up its management as it steps up efforts to successfully commercialise its Oyster generator device.
Non-executive director John Malcolm takes over as chief executive later this month, with outgoing CEO Martin McAdam leaving the firm he has headed for the last 6 years.
Mr McAdam said the spell had been one of the “most challenging and rewarding” of his professional career, but that every leading business has to go through a “process of renewal”.
In July the group posted losses of £16.5 million during the 12 months to the end of March, including a £12.7m impairment on the value of its flagship Oyster technology.
The result was a significant improvement on the £35m reverse booked during the previous year, marking a lack of clarity in the UK energy investment market and uncertainty over the length of time it could take to prove the equipment’s efficacy.
Mr McAdam paid tribute to his colleagues, and the funding commitments made to support of the firm by governments in Edinburgh, London and Brussels.
“Aquamarine Power is a superb business, staffed by bright, dedicated people and supported by an excellent board and shareholders,” he said.
“Wave energy remains the world’s last great untapped renewable energy source, and the continued endeavour to harness it successfully remains one of the most exciting challenges of our age.
“The prize is enormous, and I think we now have a very clear understanding of the precise nature and scale of the technical and financial challenges we face.
“On the financial side, the Scottish and UK governments and the European Union have done a tremendous job in supporting the industry thus far, and I think now is a suitable point to examine critically how industry and government can work together to enable the next great leap to commercialisation.”
Aquamarine Power’s shareholders include Perth-based power giant SSE, global power and automation company ABB and Scottish Government enterprise agency Scottish Enterprise.
Its Oyster 800 machine has been undergoing testing off the Orkney Islands, while an improved model is currently under development.
The firm said Mr Malcolm, a member of its technical committee, has broad international experience with major energy firms like Shell, Petroleum Development Oman and Syria’s largest joint venture oil and gas producer Al Furat Petroleum.
He said he joined Aquamarine at a “very exciting” time in its history, and was looking forward to working closely with its team of talented engineers, board and shareholders.
“The Oyster 800 has just commenced operational testing following a comprehensive summer refit and we are looking forward to some very positive results,” said Mr Malcolm.
“The machine has already clocked up 60,000 operational hours and has demonstrated its survivability in all conditions through three winters,” he added.
“The company is well funded and has a very clear plan to progress the technology, including the development of an offshore power take-off which is being progressed via the pan-European WavePOD collaboration.”
Company chairman Paul Capell said that Mr Malcolm was “an immensely experienced industry leader with a very strong grasp of the business and technical challenges which Aquamarine Power is working so hard to surmount”.
“His broad experience, gained across a range of energy and engineering disciplines, will bring insight and innovation to the next phase of the company’s growth,” he said.
“I have enjoyed working with John and the support he has provided as a non-exec over the last couple of years, and I know he is relishing the prospect of his new hands-on role.”