OPT wins $4.8m from US Department of Energy
September 13 2010 - 2:00AM
UK Regulatory
TIDMOPT
RNS Number : 5388S
Ocean Power Technologies Inc
13 September 2010
OCEAN POWER TECHNOLOGIES AWARDED $4.8 MILLION BY US DEPARTMENT OF ENERGY
Pennington, New Jersey - September 13, 2010 - Ocean Power Technologies, Inc.
(Nasdaq: OPTT and London Stock Exchange AIM: OPT) ("OPT" or the "Company") is
pleased to announce that it has won two new funding awards totaling $4.8 million
from the US Department of Energy ("DoE").
OPT plans to use the first award, for $2.4 million, in connection with the
construction and deployment of one of its PB150 PowerBuoys at Reedsport,
Oregon, as part of the first proposed commercial wave power project in the US.
Deployment of the 150 kilowatt peak-rated PB150, which is currently under
construction, is expected to occur in 2011. This is the second award to OPT by
the DoE in connection with the Reedsport project. In 2008, OPT received $2.0
million to use towards the construction of the PB150 PowerBuoy.
In August 2010, the Oregon project received a major boost when the Company
signed an agreement with 14 stakeholders to support the responsible, phased
development at the Reedsport site of a 10-PowerBuoy wave power station. With a
peak generating capacity of 1.5MW, it is equivalent to the power needs of about
1,000 homes. This agreement represents a key step towards the granting of a
license by the Federal Energy Regulatory Commission.
The second award being announced today is also for $2.4 million and it is
intended to be used for the design and development of OPT's next generation
500kW PowerBuoy wave power system, the PB500. The technology development will
focus on increasing the PB500's power extraction efficiency, implementing a
"Design-for-Manufacture" approach and reducing maintenance costs, all of which
aim to achieve lower installed capital and energy costs and make wave power more
competitive with fossil fuels. This award follows an initial $1.5 million award
announced in April 2010, taking the total DoE funding in connection with the
PB500 to $3.9 million.
Charles F. Dunleavy, Chief Executive Officer of the Company, said: "These awards
are another significant step in a global drive to make wave power a commercial
reality. OPT's programs of work under these awards are in accord with the
Department of Energy's objectives to help develop innovative technologies that
contribute to the clean energy economy. The funds will help OPT to accelerate
the commercialization of our PB150 wave power stations in the US and facilitate
the development of our 500 kilowatt-rated PowerBuoy technology. We appreciate
the DoE's continued support of OPT's programs to harness wave power as a major
source of renewable energy."
Issued to OPT under a competitive process, the awards were announced by the US
Secretary of Energy, Steven Chu, to accelerate the technological and commercial
readiness of emerging marine and hydrokinetic technologies, which seek to
generate renewable electricity from the nation's oceans and free-flowing rivers
and streams.
OPT's receipt of funds under these awards is subject to the negotiation of
definitive contracts and confirmation of cost sharing sources. OPT intends to
seek third party funding to satisfy its cost sharing obligations under the DoE
grants.
Forward-Looking Statements
This release may contain "forward-looking statements" that are within the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements reflect the Company's current expectations about its
future plans and performance, including statements concerning the impact of
marketing strategies, new product introductions and innovation, deliveries of
product, sales, earnings and margins. These forward-looking statements rely on a
number of assumptions and estimates which could be inaccurate and which are
subject to risks and uncertainties. Actual results could vary materially from
those anticipated or expressed in any forward-looking statement made by the
Company. Please refer to the Company's most recent Form 10-K for a further
discussion of these risks and uncertainties. The Company disclaims any
obligation or intent to update the forward-looking statements in order to
reflect events or circumstances after the date of this release.
About Ocean Power Technologies
Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange AIM: OPT)
is a pioneer in wave-energy technology that harnesses ocean wave resources to
generate reliable and clean and environmentally-beneficial electricity. OPT has
a strong track record in the advancement of wave energy. The Company
participates in a $150 billion annual power generation equipment market. OPT's
proprietary PowerBuoy system is based on modular, ocean-going buoys that
capture and convert predictable wave energy into clean electricity. The Company
is widely recognized as a leading developer of on-grid and autonomous
wave-energy generation systems, benefiting from over a decade of in-ocean
experience. OPT's systems are insured by Lloyds Underwriters of London. OPT is
headquartered in Pennington, New Jersey with an office in Warwick, UK. More
information can be found at www.oceanpowertechnologies.com.
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Contact information:
+----------------------------------------+---------------------------------+
| Ocean Power Technologies, Inc. | |
| George W. Taylor, Executive Chairman | Telephone: +1 609 730 0400 |
| Brian M. Posner, Chief Financial | |
| Officer | |
+----------------------------------------+---------------------------------+
| Nomura Code Securities Limited | |
| Juliet Thompson, Richard Potts | Telephone: +44 20 7776 1200 |
+----------------------------------------+---------------------------------+
| Media Contact: | |
| Corfin Public Relations Limited | |
| Neil Thapar, Claire Norbury | Telephone: +44 20 7596 2860 |
| | |
+----------------------------------------+---------------------------------+
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