Hydro Wind Energy has announced that it has signed an agreement with GEM Global Yield (GEM), a private investment group, for a € 50 million capital commitment.The finance raised from GEM will go towards developing technologies for power generation (OceanHydro Wind) and water desalination (SubSea RO Wind). Both OceanHydro Wind and SubSea RO Wind are powered by high altitude, ocean-based kites and vertical axis wind rotors rather than turbines. The company is currently in the midst of a project building and testing a subscale system of both technologies off the coast of Fujairah in the United Arab Emirates. The company plans to have both scale prototypes completed by the end of 2022, with full scale commercialization planned for 2023.
Under the agreement, GEM commits to provide Hydro Wind Energy with a share subscription facility of EUR 50 million for a 36-month term following the public listing of the company shares on a European or American Stock Exchange. Hydro Wind Energy will control the timing and maximum amount of drawdown under the facility and has no minimum drawdown obligation. Concurrent to the public listing of Hydro Wind Energy's shares, GEM will receive warrants to purchase shares in the company.