QED Naval

Idea

Introduction

Tidal energy is 100% renewable and predictable, guaranteeing power 20+ hours every day of the year. So, when there is no wind or sun, tidal can fill the demand gaps and balance the grid without switching on diesel, gas or coal fired generators.

The UK has 50% of Europe’s tidal energy resource, and a predicted GVA of £1.4bl by 2030, ranking 2nd globally after Canada. With world wide opportunity tidal energy brings high-tech, green-recovery jobs, manufacturing and exports. We believe QED is well placed with its UK and EU operations.

QED is a technology and project developer of innovative hybrid-tidal energy solutions. It has developed a disruptive, self-deploying, turbine foundation platform called Subhub. Subhub saves stakeholders circa 60% on deployment, operating and maintenance costs, and increases yield, by up to 48%, through its novel hydrodynamic hull design.

Your green impact investment in renewable tidal energy with QED will help further demonstrate our key efficiencies, as outlined above, to the $76bn global market which we are addressing.

Substantial accomplishments to date

2012 - QED successfully completed a £150k+ study on the technical and commercial feasibility of Subhub tidal platforms at Community and Industrial scales.

2014 - undertook a £1.5m SMART, R&D project, with £469k grant, to design, build and deploy a 150t, Subhub Community Demonstrator. Completed in 2017, Subhub has been in Strangford Lough, Ireland, successfully proving its operations & maintenance and capabilities since.

2019 - QED acquired a stake in world renown Dutch tidal turbine company Tocardo BV. In a collaboration with marine contractor Inyanga/HydroWing, this new collaboration gives us: turnkey capability for sea and river tidal projects; an EU base; project pipeline; and global opportunities incl Indonesia and Canada.
We feel that Tocardo are perhaps among the world’s most tried and tested turbines, having been in water and on projects for nearly 10 years.

2020 - Acquired, through Tocardo, the iconic Oosterschelde Tidal Project in Holland, a 1.25MW tidal plant in the storm barrier owned by RWS - (Dutch Water Authority). With its potential expansion into remaining gates and other dams, this has attracted significant interest with an ultimate 100MW potential.

2020 - secured €3.5m EU funding and place on Interreg’s €46m global showcase TIGER project. This allows QED to: deploy and showcase Subhub, with 0.2MW capacity; with independant verification. This project is to evidence cost and yield savings and complete the design and development of our first Industrial Scale 1MW unit, ready for deployment in 2023.

Monetisation strategy

It is planned that QED will, in future, generate core revenue from: 1) licensing Subhub manufacture 2) dividends from Tocardo turbine sales (structured this way as Tocardo is a part owned subsidary) 3) recurring, long-term income streams from remote monitoring of energy and data 4) front end design and project management.

Initially QED will adopt a developer role with equity position on our sites initiated. It will operate these sites, until proven, then sold.

If and when the global market emerges and adopts QED’s technology, then it is anticipated that core revenues should benefit from long term, fixed contracts that scale significantly with our plans.

QED has secured EU funding which, along with private funding, leverages to accelerate development. We are competitive with diesel generation in off-grid locations. As we scale up we drive down costs and will be competitive with a clear route to market.

QED has a well-developed project pipeline. With Tocardo and new strategic partners, we now have a track record in delivering world leading projects and see this further enhanced with hydrogen generation.

Use of proceeds

We will use funding for three core purposes:

1) Building the Team (20%) – enhance design and operational team, securing data, IP and knowledge.

2) Project Delivery (70%) – QED has acquired the largest tidal array in the world (OTP with 5 Tocardo tidal turbines). Funds will go in part to getting this project operational and generating revenue.

Match funding some of our Interreg TIGER project, where we will refit Subhub and re-deploy it on the South Coast England. A portion of funds will go towards fitting our Tocardo turbines and to validate cost reduction and energy yield claims.

3) Growth & Commercialisation (10%) - securing project pipeline, working with existing partners through consenting and licensing processes to commercialise sites

QED has a well-developed business plan for the next three years and clearly defined path to scale with pipeline at named sites.