The financial boost makes SIB the latest investor in KPS, along with E.ON, Schlumberger and Shell Technology Ventures who announced a combined £5m investment in December 2016.
KPS' power system features two kites which fly up to an altitude of 1,500 feet. Both kites are attached by tethers to a winch system that generates electricity as it spools out, offering the potential to transform global offshore wind generation market.
The method is cheaper to manufacture and requires less construction and installation materials than conventional wind turbines.
The company has been flight testing its current 40kW system at a test facility 8km south east of Stranraer over the past few weeks and has also secured planning consent to deploy it's new 500kW power system, which will be manufactured and assembled by August. This will lead to a planned onshore demonstration array of multiple 500kW systems within the next three to four years elsewhere in Scotland.
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After this, KPS will develop a 3MW onshore system at the test facility and then deploy a similar sized power system in offshore waters.
Speaking during a visit to Kellwood Engineering in Dumfries today, 22 June, Economy Secretary Keith Brown said: "Scotland has a long and proud history of innovation and Kite Power Systems' pioneering approach to harnessing wind energy shows great promise.
"The company has recently relocated from Essex to Glasgow and this £2m investment from the Scottish Investment Bank will enable it to expand further and demonstrate the latest iteration of its kite power technology in Scotland.
"Scotland has recently moved into the top group of EU nations as regards innovation performance, and the commercialisation of novel ideas – such as the technology being developed by Kite Power Systems – will help to drive us even further forward."
David Ainsworth, KPS Business Development Director said: "This very welcome new investment from the SIB is an endorsement of the extensive R&D work the KPS team has carried out and is a further vote of confidence in our technology and our business. Along with the support of our other investors, this backing will accelerate KPS's commercial development plans towards deploying lower cost, deep-water offshore wind energy on a global scale."
Iain Scott, Chief Financial Officer at Scottish Enterprise, said: "Scotland has an excellent track record in renewables innovation, and Kite Power Systems' decision to move to Scotland is testament to our reputation in this area. Kite Power Systems is a great example of an ambitious and innovative company operating in this sector, and we look forward to continuing to work with the company to build on the success of its prototype."
KPS has already built a team of 20 engineers and aims to grow it's numbers to 34 by the end of 2017.
Image: Cabinet Secretary, Keith Brown (right) with David Ainsworth, Director, KPS alongside the winch unit for the company's latest kite power generator.
(LM)
