Profit from the power of the tides

The sea is the world's largest untapped source of renewable energy. But harnessing it is difficult and costly. But now, with the backing of venture capitalists, governments and utilities, it may soon compete with other energy sources. Eoin Gleeson investigates, and picks the best bet in the sector.

Covering more than 70% of the Earth's surface, the ocean is the world's largest untapped source of renewable energy. Sea water 832 times more dense than air is a hugely powerful source of kinetic energy. And unlike, say, solar power, that energy is available at any hour of the day.

However, harnessing the power of the ocean has proved almost comically difficult. Recent experiments have ended in disaster. Last year, for example, a state-of-the-art wave machine sank off the Oregon coast. And after spending millions developing a tidal turbine, Verdant Power suffered a similar fate when New York's East River tore the blades off its 16-foot rotor.

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Eoin came to MoneyWeek in 2006 having graduated with a MLitt in economics from Trinity College, Dublin. He taught economic history for two years at Trinity, while researching a thesis on how herd behaviour destroys financial markets.