Tidal energy developer Sustainable Marine Energy (SME) has been placed under administration, citing the challenges faced by its Canadian division earlier this year as a significant factor.

Tidal energy developer Sustainable Marine Energy (SME) has been placed under administration, citing the challenges faced by its Canadian division earlier this year as a significant factor. The Edinburgh-based company, focused on the creation of tidal energy systems, underwent administration on Wednesday. Approximately three employees from the UK were let go due to the decision to halt operations.

Established in 2012, SME specializes in developing renewable energy solutions, primarily centered around tidal energy systems designed to provide cleaner and more sustainable power to island and coastal communities. The company maintains offices in Spay, Germany, and Dartmouth in Nova Scotia.

One of its key innovations is the floating in-stream tidal platform known as PLAT-I. Variations of this platform have been deployed both off the west coast of Scotland and in Canada. Last year, SME's Canadian subsidiary successfully powered an array in the Bay of Fundy, Nova Scotia, marking a significant milestone by delivering in-stream tidal power to the Canadian grid. This achievement was facilitated by the PLAT-I platform, equipped with six turbines on its stern, utilizing the flow of tidal waters to generate electricity.

Despite its successes, SME's Canadian subsidiary encountered permitting issues with Fisheries and Oceans Canada (DFO) in May of this year, which ultimately led to its insolvency. This setback prompted the UK-based company to make the difficult decision to enter administration. The suspension of the Canadian operations significantly impacted SME's overall viability.

Graeme Bain and Donald McNaught from Johnston Carmichael, an accountancy and business advisory firm, have been appointed as joint administrators. Bain noted that SME has been a prominent developer of tidal energy solutions, exemplified by the successful implementation of its innovative PLAT-I platform in Canada. He acknowledged the complex circumstances, which prompted the UK company's decision to enter administration.

Bain also mentioned that an evaluation of the potential future viability of the ongoing Canadian project will be undertaken in collaboration with experts from the energy, infrastructure, and sustainability sectors. Additionally, interest will be sought for SME's intellectual property, given its applicability in various regions globally.

This development adds to the challenges faced by the marine energy sector, which has witnessed the struggles of companies like Pelamis and Aquamarine Power. Nevertheless, the sector has received support, such as ring-fenced funding through initiatives like the Contracts for Difference scheme. Success stories like Orbital Marine Power suggest that optimism remains in the industry.

Coinciding with these events, Crown Estate Scotland recently initiated an 'in-depth survey' of the marine energy sector as part of its consideration for future site leasing opportunities."