The firm intends to use the funds to enable the long-term commercial operation of a tidal stream turbine off the coast of Orkney.

In 2018, Orbital raised £7 million through ethical investment-based crowdfunder Abundance – the platform’s largest fund-raise to date – to build the 2MW capacity O2 floating tidal turbine.

Construction was completed last summer, by parent company Orbital Marine Power Ltd, on budget and with only minimal delays due to Covid, using partners in an extensive UK supply chain. Notably, the O2 was the first vessel to be launched from a Dundee shipyard in forty years.

Having withstood a winter of stormy weather, the turbine has now been fully commissioned, and since July 2021 has been exporting predictable, low carbon electricity to the UK grid. It will be capable of generating enough renewable electricity to meet the needs of around 2,000 UK homes every year, for 15 years, saving over 30,000 tonnes of carbon.

Orbital Marine Power Ltd plans to integrate its innovative tidal stream technology in a groundbreaking project in Orkney with battery storage and green hydrogen production and to deploy the O2 technology across further multi-megawatt projects. This approach will ensure tidal stream energy can play a vital role as part of the global clean energy transition.

Andrew Scott, CEO, Orbital Marine Power Ltd, said: “We want to transform the tidal stream energy sector and unlock a new source of clean, predictable power for millions of people, homes and businesses around the world. We have already built and deployed the world’s most powerful tidal turbine, and the next stage of our growth promises to be even more exciting.”

Bruce Davis, co-founder and joint managing director, Abundance, said: “With backing from 2,300 Abundance customers Orbital has reached a key marker and now they are ready to move onto the next exciting stage of the voyage. They are proof that the UK has the potential to lead the global tidal industry and grow a new, low carbon industrial base, creating many thousands of long-term, skilled jobs where they are needed.”

The investment offers a return of 6% a year from interest and capital repayments over a 12-year term, backed by the long-term income from the Renewables Obligation scheme and sale of electricity from the operational O2 turbine. It is part of a long-term debt/equity package that will be used to repay the construction finance raised in 2018 as well as to scale up the business.

Bruce Davis added: “Orbital’s success shows the power of investment-based crowdfunding to create world-leading green industries and jobs. As the green economy evolves in new and innovative ways our customers are at the forefront, with record levels of investment on the platform driving forward better ways of doing energy, food and transport. There’s never before been as much choice about how to have an impact with your money.”