Canadian utility Emera has withdrawn from its Cape Sharp Tidal joint venture with OpenHydro as the fall-out continues from the decision last month by Naval Energies to pull the plug on the Irish developer.
Emera has formally notified OpenHydro and its provisional liquidator Grant Thornton of the withdrawal and is examining its rights and obligations under various commercial agreements with its partner.
Emera is a minority investor in Cape Sharp Tidal, which installed a 2MW vertical axis turbine in the Bay of Fundy in Nova Scotia last month.
In a statement, Emera said the liquidation of OpenHydro and Naval Energies’ decision to end investment in tidal left it “with no practical choice but to withdraw” from Cape Sharp Tidal.
“Without support from the technology developer, OpenHydro, to operate and maintain the technology and the turbine, we do not believe that there is further value in pursuing this project for our business,” it added.
The company said it had invested more than C$12m in the venture but did not own or develop the technology for the Fundy project.
Grant Thornton currently controls the majority interest of OpenHydro Technology in Cape Sharp Tidal and is responsible for decisions related to the operations and future of OpenHydro and its respective subsidiaries.
Emera has “reinforced with Grant Thornton the need to continue environmental monitoring and safe operation” of the deployed 2MW turbine and the “importance of meeting all obligations of Cape Sharp Tidal and OpenHydro to local suppliers”.
The Halifax outfit said it intends to continue its support of tidal in Canada through its involvement in the Ocean Supercluster initiative.
Image: Tidal turbine deployment in the Bay of Fundy (Cape Sharp Tidal)