Alstom SA (ALO), Europe’s second-largest power-equipment maker, said it paid less than 50 million pounds ($79 million) in cash to buy ocean turbine maker Tidal Generation Ltd. from Rolls-Royce Plc. (RR/)
The acquisition, announced in September, was completed today, Alstom said in a regulatory statement. Tidal Generation will now be integrated into the French company and rebranded as Alstom, Julien Pelcot, vice president of strategy at the manufacturer’s renewable-power division, said by e-mail.
The purchase price is less than half the 130 million euros ($176 million) to be paid by DCNS SA for OpenHydro Group Ltd. in a transaction announced Jan. 22. The deal gives Alstom access to a 1-megawatt turbine at the European Marine Energy Center in Orkney, Scotland, that Tidal Generation installed this month for tests. Europe doesn’t yet operate commercial-scale tidal parks.
Alstom is adding marine-power assets to expand in renewable generation as governments offer incentives for clean-energy ventures. It bought 40 percent of AWS Ocean Energy Ltd. in 2011 and is working with U.K. utility SSE Plc to use wave-power systems at a 200-megawatt project off northern Scotland. Alstom also makes turbines for offshore wind farms.
Tidal Generation’s Orkney turbine will be tested for about 18 months to gather environmental and performance data, with a view to installing multiple devices prior to full commercial production, according to the Bristol, England-based company.
Alstom, based in Levallois-Perret, France, is Europe’s largest power-equipment maker after Siemens AG. (SIE) Siemens last February agreed to buy the shares it didn’t already own in U.K. tidal-technology developer Marine Current Turbines Ltd. The purchase implied a valuation for the company of 18 million pounds, according to Bloomberg New Energy Finance.
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