Press release

INNER SOUND TIDAL PROJECT NOW GOING TO TENDER

29 June 2010

Following the deadline of 28 May 2010 for expressions of interest and pre-qualification for a tidal energy project at the Inner Sound, The Crown Estate announced today that it has invited four companies to tender.

The Inner Sound lies within the Pentland Firth and Orkney waters strategic area, between Caithness on the Scottish mainland and the island of Stroma. As one of the most energetic tidal areas in the Pentland Firth, it has potential for a significant commercial project of 200 MW or more installed capacity.

On 31 March, we announced the decision to re-tender the Inner Sound, following withdrawal of the preferred bidder during the first competitive wave and tidal leasing round in the Pentland Firth and Orkney waters. Between 19 April and 28 May, companies were invited to make expressions of interest and complete pre-qualification questionnaires, as the first phase of competition for the site. The re-tendering process will now proceed to the second phase, which involves companies submitting detailed tenders. Should a successful bidder emerge from the process, we would plan to award an agreement for lease in the autumn.

Commenting on the announcement, Rob Hastings, director of the marine estate at The Crown Estate said: “We are pleased to see continuing interest in tidal energy development in the Inner Sound. On top of the potential 1,200 MW of wave and tidal energy projects in the Pentland Firth and Orkney waters announced earlier this year, a project at the Inner Sound could further advance the industry.”

As owners of the UK seabed out to the 12-nautical mile territorial limit and around half of the foreshore, we are continuing to work closely with its partners, the Scottish Government, Highlands & Islands Enterprise, Orkney Islands Council and the Highland Council, to maximise benefits to the local area and the rest of Scotland from investments in offshore renewables. This includes the Pentland Firth and Orkney waters delivery group, recently set up by the Scottish Government in partnership with ourselves to tackle strategic issues facing developments.