Ocean Power Technologies Signs Agreement For Development Of Wave Power Station In Japan

Published: 08-Oct-2009

Ocean Power Technologies, Inc. (Ocean Power Technologies) has signed an exclusive agreement with a consortium of three Japanese companies to develop a demonstration wave power station in Japan. The Japanese consortium comprises Idemitsu Kosan Co., Ltd., Mitsui Engineering & Shipbuilding Co., Ltd., and Japan Wind Development Co., Ltd. (the “Consortium”).

The initial phase of the project will be for Ocean Power Technologies and the Consortium to work with the Japanese government to increase the recognition of wave power in Japanese energy policy, and to identify favorable sites for Ocean Power Technologies wave power stations and assess their commercial prospects. Subject to the successful identification of a project site and completion of economic assessments, the parties plan to enter into an agreement to build a demonstration plant with up to three of the company’s PowerBuoys. The trial plant would provide the basis for the expected building of a commercial-scale Ocean Power Technologies wave power station with an initial capacity of 10 MW or more. Total output from the wave power station would be sold to electric utilities, and at 10MW, could provide power for up to 3,000 households in Japan.

Under the anticipated agreement to build the demonstration plant, Ocean Power Technologies will sell the equipment for the power station to the Consortium. For subsequent wave power stations, the Consortium will provide manufacturing and maintenance of the power stations and on-going plant operations, while Ocean Power Technologies will provide its PowerBuoy technology under license and also sell certain subsystems of the plant to the Consortium.

Further, Ocean Power Technologies has been invited to become a member of the Tokyo Wave Power Initiative, a committee including the city of Tokyo, regional governments and national agencies involved in the promotion of new energy sources.

Commenting on the agreement, Ocean Power Technologies' Executive Chairman, Dr. George W. Taylor, said, “We are delighted to be working with three of Japan’s leading companies in forging a new way forward for wave energy in Japan. As one of the world’s largest economies, with a dense urban population and a coastline almost as long as Canada, Japan plays a significant regional role in promoting technical innovation and clean energy. We look forward to working with this group to make an important contribution to achieving Japan’s targeted reductions in carbon emissions.”

Akira Kurosaki, of the business development and innovation headquarters of Mitsui Engineering & Shipbuilding, said, “OPT’s in-ocean experience and technical strength make it a strong partner. Wave power is a very concentrated and predictable source of renewable energy that has great potential for Japan. We believe that OPT’s PowerBuoy technology will be an important part of our common vision of reducing dependence on imported fossil fuels.”

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