Description: A 10 tonne turbine – worth multi-millions of dollars- was disabled in three weeks in an attempt to test the electricity generating potential of the Fundy tides. But the Irish company, Open Hydro, is back to the Bay of Fundy again in its ongoing efforts to harness the this possible generation opportunity. Some experts say the Bay of Fundy offers the potential to generate over three times the energy that the Province of Nova Scotia requires on a cold winter day, offering huge export potential for clean energy.
Source: The Globe and Mail.com
Date: November 16, 2014
1) What do you think of the potential of harnessing these massive tidal flows for commercial purposes?
2) As an accountant, how would you categorize the costs incurred by Open Hydro given the rules around research costs versus development costs?
3) If you were an executive at Open Hydro, what sources of financing might you recruit for this intriguing initiative?