thumbnail of Orbital Marine Power (Orkney) Debenture 1

Orbital Marine Power (Orkney) Debenture 1

Interest rate 12.0% a year
Term 3 yrs and 3 mths
Total Invested £7m
2175  investors
Maturity date 30 Jun 2022
thumbnail of Orbital Marine Power (Orkney) Debenture 1

On a mission to build the world’s most powerful floating tidal stream turbine

Orbital Marine Power was founded as Scotrenewables in 2002 with the aim of finding an efficient way to harness tidal energy.

Since 2003, Orbital has tested its technology at increasing scales, which led to the delivery of the 2 MW SR1-2000 tidal turbine in 2016. The SR1-2000 started delivering power to the grid at the European Marine Energy Centre in Orkney, Scotland, at the end of 2016 and was in continuous operation without any major maintenance during the last 12 months of its operations until August 2018. Building on 16 years of research and development, the Orbital O2 2MW is a refined and improved version of the previous tidal turbines manufactured.

This investment helped fund the first production model Orbital O2 2MW tidal turbine. The final design is an innovative floating tidal turbine that can be installed and maintained using small, local boats. The project to build and install the new turbine secured more than £9 million in grants and equity funding and a further £7 million raised on Abundance to help make it happen.

As tides rise and fall, the difference between ebb and flood causes water to move, creating currents with significant kinetic energy. Orbital makes use of tidal stream energy by extracting energy from naturally occurring tidal currents without the need for any barrages or dams. It is one of the newest entrants into the renewable energy market and as costs continue to fall it could make a significant contribution to energy generation portfolios in areas around the world featuring large amounts of the resource. Orbital hopes its tidal technology can achieve competitiveness with other renewable energy sources.

This investment was fully repaid on 30 June 2022.

The O2 turbine, now fully constructed and towed to Orkney in late April 2021
The O2 turbine now fully constructed and towed to Orkney in late April 2021

Key terms

Issuer Orbital Marine Power (Orkney)
Return 12.0% a year
Term period 3 years and 6 months
Start date 1 January 2019
Maturity date 30 June 2022
Capital repayment Lump sum on maturity
Amount raised £7,000,000.00
Secured or unsecured Secured It is important to understand that security does not guarantee repayment of your investment or returns.

Documents

Debenture Deed
Download PDF The debenture deed sets out the legal agreement and terms for this investment.

Payment schedule

This table gives a breakdown of what was paid back on this investment, based on an example investment of £1,000.

Payment schedule table
Payment date Capital repayment Interest Total
30 June 2022 £1,000.00 £503.39 £1,503.39
Total £1,000.00 £503.39 £1,503.39

Updates

These updates tell the story of the investment over its life and include information reported to investors by the company or council behind the investment. The updates are provided for informational purposes only and do not constitute an inducement or invitation to invest. Information provided at the time of publishing may no longer be accurate.

This investment closed today.

Please read the full update here

Orbital Marine Power (Orkney) plc raised £7million in its first investment on Abundance in 2018. The £7 million helped Orbital successfully build and install the innovative O2 — the world’s most powerful tidal stream turbine — off the coast of Orkney, a process it completed in 2021.

The O2 was delivered by a UK supply chain and it is estimated to have created over 80 jobs through the build. At 74m long and resembling a futuristic spacecraft, the O2 has safely passed through a full winter’s worth of storms since installation in summer 2021 and has completed its commissioning programme along with exporting over 1GWh of predictable, low carbon electricity to the UK grid.

Raising new funding

Now the O2 turbine is operational, Orbital is looking to complete the fund raising required to repay the capital and accrued interest, in full, on 30 June 2022. This is part of a wider investment and growth plan for Orbital as it aims to accelerate its business, using the success of the flagship O2 project, to deliver multi-MW projects in the UK and overseas in its mission to help turn the tide on climate change.

As part of this funding package, Orbital Marine Power (Orkney) plc will be looking to raise £4 million through a new investment offer on Abundance. This investment will offer a return of 6% a year over a 12 year term, backed by the long term income that comes from the Renewable Obligation scheme and sale of electricity from the operational O2 turbine. Alongside this funding through Abundance, Orbital has already raised equity funding and is in the final stage of agreeing new lending from an investment bank. All 3 sources of capital will go towards covering the repayment of capital and the interest to the Abundance investors who invested in 2018.

We expect the new investment offer to be ready in the coming weeks. The marketplace remains open to this investment at the moment, but we expect the marketplace will be suspended once the new investment offer opens to allow existing investors the option of rolling over into the new investment.

Please read the full update here

Please read the full update here

Please read the full update here

Please read the full update here

Thank you to all those who voted on the proposal from Orbital Marine Power (Orkney).

The proposal requested a change to the terms of the investment to extend the investment by up to 12 months, from 30 June 2021 to 30 June 2022, with the option to repay investors earlier within that period. Investors will continue to earn the current rate of return of 12% over this extended period. You can view the proposal here.

In order for the proposal to be agreed, investors holding 75% of the Debentures had to vote in favour of a Special Resolution. This voting threshold has now been met and the proposal has therefore been accepted. As of today, 1,731 investors holding 77.3% of the Debentures have voted in favour of the Special Resolution, with 25 investors holding 0.6% of the Debentures voting against.

With the proposal accepted, the investment has been extended and the schedule of interest payments has been updated. The investment can also now be listed for sale on the marketplace again.

Orbital Marine Power (Orkney) will continue to provide investors with updates on the O2 turbine's development as it enters operation, as well as the business' wider progress.

Please read the full update here

Please read the full update here

Please read the full update here

Please read the full update here

Please read the full update here

Orbital Marine Power has had some recent press coverage as the tidal turbine takes shape.

Please read the full update here

Please read the full update here

Please read the full update here

Please read the full update here

Please read the full update here

Orbital Marine Power Limited has been awarded a €3.12 million grant under the Tidal Stream Industry Energiser Project, known as TIGER. Orbital will deliver further cost reduction of its proprietary technology and provide floating tidal energy expertise across a range of collaborative workstreams. The company will support the project’s overall objectives of stimulating tidal stream energy generation in the Channel region.

Please read the full update here

Please read the full update here

The Debenture Deed for the investment in Orbital Marine Power (Orkney) plc has undergone minor technical amendments. These relate to:

  • Allowing the issuance of more Debentures open only to subscriptions of £90,000 or over, up to a maximum of £1 million, under a separate offer. The opportunity to open a separate offer was mentioned in the Offer Document.
  • Clause 16: Meetings of Holders, Voting and Modifications to the Deed. It was subsequently identified that there was an incorrect reference to the Abundance Terms and Conditions, which has now been resolved along with updated wording to clarify the provisions for voting and deed modifications.

For the avoidance of doubt, these amendments do not otherwise affect or change the terms of the investment.

This investment closed today.

Orbital Marine Power (Orkney) has extended the close date for this investment to 17 January to allow more time for interested investors to participate. This does not change the terms of the investment.

Please read the full update here

Orbital Marine Power (Orkney) has reached £1 million raised out of its £7.0 million target.

Orbital Marine Power (Orkney) Debenture 1 opened for investment today.