Minesto launches microgrid project in the Faroe Islands with local integration

Sweden's Minesto begins a SEK25mn ($2.26mn) tidal microgrid project in the Faroe Islands, targeting integration with local applications such as electric vehicle charging and industrial processes.

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Swedish marine technology developer Minesto has initiated the early stages of a tidal microgrid project in the town of Vestmanna, Faroe Islands. The project, backed by SEK25mn ($2.26mn) in funding from the Swedish Energy Agency, is being conducted in partnership with local utility Sev, energy solutions firm Capture Energy, and the Swedish Environmental Research Institute (IVL Svenska Miljöinstitutet).

A commercially focused tidal power system

Minesto confirmed that a 1.5-day planning workshop was held at its headquarters in Gothenburg to structure the technical and operational phases of the project. The consortium aims to deliver a turnkey energy system capable of providing steady electricity production from marine currents, with an initial focus on local energy needs. The initiative is part of a broader strategy to demonstrate the commercial viability of tidal power technology.

According to Minesto’s Chief Operating Officer Johannes Hüffmeier, the microgrid system could deliver base-load capacity not only for the Faroe Islands but also potentially in international markets. The company is positioning its solution for use in remote or island markets where energy stability remains a challenge.

Concrete applications for end users

Alongside the main project, Minesto has initiated work to integrate end-user applications in collaboration with Sev. Two specific uses are being prioritised: electric vehicle charging and a local industrial process, both identified as having strong potential for fossil fuel replacement. These applications are expected to validate the microgrid’s commercial relevance through localised electrification.

Minesto Chief Executive Officer Dr Martin Edlund stated that these use cases will “demonstrate the customer value of the microgrid” and show the technology’s capacity to address island market demands. The company aims to establish a concrete reference for emissions reduction through targeted energy use.

Commercial outlook abroad

The Vestmanna project is also intended as a technological showcase for export. Minesto is targeting similar geographic markets where dependence on imported fuels remains high. The Swedish firm intends to leverage this initial installation to accelerate commercial deployment of its low-flow underwater turbine technology.

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