Naval Energies is pulling the plug on its tidal turbine business in the face of a "lack of commercial prospects”.
The French company said it had decided to close its operations “following in-depth discussions with public and private stakeholders”. It is thought some 100 people are employed in the unit.
Going forward the business focus will be on floating wind and ocean thermal energy conversion.
Naval’s tidal ambitions were based on the open-centre turbine technology originally developed by Irish company OpenHydro.
Dublin subsidiaries OpenHydro Group and OpenHydro Technologies were both placed into liquidation on Thursday with debts approaching €280m, according to local reports.
The French company said keeping the segment going would have led to eroding resources and a weaker presence across the wider global ocean energy sector.
It pointed to limited deployment opportunities of only 100MW to 150MW in France through 2028, the lack of any route to market in the UK, and the “great sensitivity” to the cost of the technology in Canada.
Naval Energies chief executive Laurent Schneider-Maunoury said: “It is with regret, but also responsibility, that we are taking the decision to stop developing tidal-turbine energy.
"The deterioration of the market in France and around the world throughout the recent months has been reflected in a lack of commercial prospects over the long term.
He added: "This evolution means that we alone can no longer finance the development of the tidal-turbine activity.”
Image: holed (Naval Energies)