SGM.L Regulatory News (SGM)

1 Oct 2007 07:00

Sigma Capital Group PLC30 September 2007 SGM.L 1 October 2007 SIGMA CAPITAL GROUP PLC ("Sigma" or "the Group") Newly launched sustainable energy fund, Sigma Sustainable Energy Fund II, makes first investment Sigma, the Edinburgh-based specialist asset managers, is delighted to announcethat its second sustainable energy fund - in which Scottish and Southern Energyplc, the investment vehicles of Sir Tom Hunter and Vincent Tchenguiz, and Bankof Scotland Corporate participated as investors - has made its first investment.The fund, which is called the Sigma Sustainable Energy Fund II ("SSEF II"), hasmade an investment of £1.5 million in the field of marine energy conversion. SSEF II is investing £1.5m in Aquamarine Power Limited ("Aquamarine Power"), anewly formed company which has been created to acquire two companies, the waveenergy conversion business (Aquamarine Power Ltd) and the tidal turbinedeveloper (Renewable Technology Ventures Ltd, a subsidiary of Scottish andSouthern Energy plc). Aquamarine Power will be jointly owned with Scottish andSouthern Energy plc, which has itself invested £6.3m to support ongoingdevelopment. This joint venture will create one of the leading companies in the marine energyfield, and will develop both wave and tidal energy devices. Aquamarine Powerplans to be the first to deploy both wave and tidal devices on a commercialscale. SSEF II currently has funds under management totalling £45m, and remains open toinvestors until 20 June 2008, with a target of £100m. This investment representsSigma's fourth "clean technology" investment since it entered this sector in2006, with its first fund (the Sigma Sustainable Energies Fund). Aquamarine Power will continue to work on its near-shore wave energy conversiondevice, known as Oyster. Oyster is a device which takes wave energy andtransmits it via pressurised seawater to a hydro electric conversion unit onland. The business will also carry on the development of an underwater tidalturbine technology, known as Neptune. Allan Thomson, widely considered to be themost experienced wave power developer in the country, who developed the world'sfirst commercial-scale wave energy plant, will advise Aquamarine Power in hisrole as a non-executive director of the company. Commenting on the investment, Mark Hogarth, Investment Director at Sigma, said, "When we launched our second sustainable energy fund, SSEF II, we attracted veryhigh profile strategic partners, including SSE, which invested £10m in the fund. "This initial investment represents an exciting development for SSEF II and weare delighted to be working together with SSE and Aquamarine Power on thisproject which brings market leading technologies together." Chief Executive of SSE, Ian Marchant, said: "We believe this is the first consolidation in the marine energy field and it'sa clear sign that the industry is maturing. The team at Aquamarine Power areinventive and entrepreneurial, yet have significant experience in the marineenergy field. "We believe this is a great fit with what we are doing and is anothercontribution we can make to tackling climate change, which is one of the mostserious issues facing our planet. It will also help position Scotland as aleader in this field." Allan Thomson, non-executive director of Aquamarine Power Ltd, said, "I am very excited about the future of Aquamarine Power and am delighted SSE andSigma have chosen to support the venture. The business combines unrivalledexpertise in wave energy with the finest engineering skills and the track recordof a successful FTSE 100 company. With this track record, we believe we cansurge ahead in marine energy technology." Enquiries Sigma Capital Group plc Mark Hogarth, Investment Director T: 0131 220 9444 Graham Barnet, Chief Executive Biddicks Katie Tzouliadis/ Sophie Lane T: 020 7448 1000 Arbuthnot Securities Tom Griffiths/ Neil Kirton T: 020 7012 2000 Company website: www.sigmacapital.co.uk This information is provided by RNS The company news service from the London Stock Exchange