16 more jobs go at Pelamis as HIE gain assets

The remaining 16 staff at wave energy company Pelamis are to be made redundant, with the job losses adding to the 40 redundancies announced last month.

Blair Nimmo and Gary Fraser of KPMG LLP, who were appointed as Joint Administrators of Pelamis Wave Power Limited in November, on Friday announced that following a sales process and final closing date, a preferred bidder for acquiring Pelamis’ assets had been selected, with Highlands and Islands Enterprise being chosen, and subject to finalisation of the legal contract will acquire the majority of Pelamis’ assets.

A statement issued by the administrators on Friday said: “Unfortunately, as no final offers were received to acquire the business and assets of Pelamis as a going concern, the remaining 16 staff will shortly be made redundant. The Joint Administrators will now be working with the preferred bidder with a view to completing the sale as soon as possible.”

Blair Nimmo, joint administrator and head of restructuring at KPMG in Scotland, said: “Following the sales process, I am pleased to confirm that Highland and Islands Enterprise has been appointed preferred bidder in relation to acquiring the assets of Pelamis Wave Power Limited.

“Over the coming days we will be working to finalise the sale and are hopeful that the transaction can be concluded in the near future.

“We would like to thank all parties who expressed an interest during the sale process. Unfortunately, as no going concern solution has been found, the remaining staff will shortly be made redundant. We are working with government agencies to ensure employees obtain as much assistance as possible.”

Founded in 1998, Pelamis designs, manufactured and operates the Pelamis wave-energy converter. It was headquartered in Edinburgh, with its operations and maintenance team based in Orkney.

At the time of appointment of the administrators, Pelamis employed 56 members of staff, ten of whom were based in Orkney. When the 40 redundancies were announced last month, the administrators said that 16 employees remained, 13 in Edinburgh and three in Orkney, now they face redundancy.