Marine energy technology developer Minesto has announced the signing of a memorandum of understanding (MoU) with Morteza Capital to seek commercial tidal energy opportunities in the Maldives.
The agreement aims to address the challenges of energy transition faced by the island nation, which currently relies on imported diesel for power generation.
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The Maldives, composed of many geographically dispersed islands, encounters high energy costs and carbon emissions due to its dependence on fossil fuels.
At the same time, tourism remains a key economic sector, requiring renewable energy solutions that do not negatively impact the natural landscape.
Minesto’s Dragon technology is designed to generate electricity from low-flow tidal streams and ocean currents.
According to the company, this technology can be installed and maintained with a lightweight approach, allowing for deployment in locations where other tidal solutions are not viable.
The system operates underwater and does not alter the visual environment, a factor highlighted as important in tourist destinations such as the Maldives.
The partnership between Minesto and Morteza Capital will combine Minesto’s technical expertise in tidal energy with Morteza Capital’s experience in project development and investment in the region.
Morteza Capital will also provide local stakeholder connections in the Maldives market.
Minesto CEO Martin Edlund said: “The transition away from diesel-based electricity generation is challenging for island communities, particularly where preserving the natural environment is essential to the local economy. The Maldives is a market where our technology has the potential to make a real difference.
“Our collaboration with Morteza aligns perfectly with our go-to-market strategy. We seek to combine our technology and tidal energy know-how with strong local expertise and commercial development capabilities to pursue tidal deployment opportunities.”
Minesto has received funding from the Nordic Project Fund (Nopef) to support its activities in the Maldives as part of a strategy to promote international market development through partnerships with local and regional players.
In addition, Minesto has been selected to join the Sweden-Indonesia Sustainability Partnership, a government-backed programme supporting the development of sustainable energy solutions in Indonesia.
As part of this partnership, Minesto will work with Business Sweden to develop commercial tidal energy opportunities, including potential collaborations, access to financing, and project development in Indonesia. The country is estimated to have approximately 60GW of ocean energy potential.
Recently, Minesto was chosen by the European Commission to enter Grant Agreement Preparation for a €20.2m ($22.5m) grant under the Innovation Fund.
The funding is intended for the planned Euro Dragon Farm project in Ireland, a proposed 10MW tidal kite array.
The grant is expected to cover 60% of the total investment, with the agreement process scheduled for completion in Q1 2027.
