Mocean Energy has raised £2.2 million in funding while also securing a £500,000 grant to drive the commercialisation of its wave energy technology.

The Low Carbon Manufacturing Challenge Fund grant will fund the design, build and testing of key subsystems for its small-scale Blue Star wave energy machine.

The wider funding round will be used to secure first orders for Blue Star, which is targeted at decarbonising subsea operations in the offshore energy sector.

It will also drive further research and development into the company’s large-scale Blue Horizon technology, which was recently awarded £3.2m by the EU-backed EuropeWave programme. It aims to deploy a grid-connected machine at the European Marine Energy Centre in Orkney by 2025.

The funding comes from existing investors including Equity Gap, Scottish Enterprise and Old College Capital, the University of Edinburgh’s venture investment fund, alongside new shareholders Norwegian impact investors Katapult Ocean and MOL PLUS, the corporate venture capital arm of listed Japanese shipping conglomerate MOL.

Mocean is based in Edinburgh and Aberdeen.

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“This new equity investment is significant for Mocean Energy – not just in the quantum invested, but in the additional strengths and specialist expertise our new shareholders bring,” said managing director and co-founder Cameron McNatt.

“MOL has a global footprint in marine transport sector and MOL PLUS will help us access MOL Group’s significant resources and expertise to accelerate our commercialisation.

“Katapult Ocean invests solely in technologies which will have a positive impact on our oceans, and the Mocean team will now be able to participate in Katapult Ocean’s award-winning accelerator programme to help drive our business growth.

“The grant funding is also vital and has been match funded through this new equity round. It will help us accelerate the commercial development of our Blue Star technology.

“The coming years will be crucial to Mocean Energy, and as we scale up we need to take on board all of the learnings from our current Renewables for Subsea Power project and draw on the experience of our partners and new investors.

“I am extremely grateful to our existing shareholders who have invested again in this round, to Scottish Enterprise and to MOL PLUS and Katapult Ocean for joining us on this exciting journey.”