Saturday, 30 June 2007

Sigma taps giant wave farm

AIM-listed Sigma Capital Group, an asset management and advisory group with offices in London and Edinburgh, is giving investors access to a company that will help deliver the world’s largest wave-farm.
Edinburgh-based Ocean Power Delivery, a private company, has developed an offshore wave energy converter called Pelamis.
Four of its machines, with a combined output of three megawatts, are to be used in a scheme starting in 2008 by ScottishPower, which will receive £4 million in funding from the Scottish Executive.
According to Ocean Power, an eventual typical 30MW installation would take up one square kilometre of ocean and provide enough electricity for 20,000. It estimates that 20 such farms could power Edinburgh.
Mark Hogarth, investment director of Sigma Capital Group, said: ‘Ocean Power Delivery has got its first commercial deployment off the coast of Portugal and secured the UK’s first wave farm project in Orkney, so it’s attractive due to its stage of development.’
Ocean Power Delivery is the largest holding in the Sigma Sustainable Energies fund, with £500,000 invested.
Sigma, which boasts Artemis New Enterprises fund as a 5.46% stakeholder, has also announced the first closing of its Sustainable Energy Fund II at £35 million.
The fund, which has limited partner contributions from Scottish and Southern Energy, Bank of Scotland Corporate, West Coast Capital and Sigma Technology Investments, is Sigma’s fourth fund and second sustainable energy fund.
Sigma, which has a market capitalisation of £24 million, reported a turnover for 2006 of £7.9 million, up from £3.3 million in 2005. Its pre-tax profit was £1.8 million, compared with a loss of £0.4 million in the previous year.
Last week its shares were trading at 63.25p, down from a 52-week high of 66.5p on 19 June but well ahead of its year-low of 25.25p recorded last July.

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