Tidal energy developer, Openhydro plans to raise €55 million as it gears up to commercialise its technology.

The Dublin-based company said on Friday that its board has approved a process to raise up to €55 million.

“These funds will be used to support the business as it transitions from research and development to the commercial supply of tidal turbines,” it said in a statement.

Openhydro intends to invite existing shareholders and some external parties to participate.

The company intends to issue a loan note that will give holders the right to convert it to shares.

Openhydro’s existing backers, including its biggest shareholder, French industrial and defence group, DCNS, have already pledged to provide €45 million of the total.

The energy company said that the board would consider increasing the €55 million figure should the offer be oversubscribed.

The company expects to complete the fundraising over the closing months of the year.

Openhydro has tidal turbines with the capacity to deliver 900 mega watts of electricicty in the UK, France and Canada.