GE Financial Services – its loan unit – has taken an equity stake in UK’s Ocean Power Delivery, Ltd., developer of the world’s first commercial facility that will generate electricity from offshore ocean waves.
GE will take an undisclosed equity position as part of OPD’s $22.5 million (GBP 13 million) equity raise as Ocean Energy prepares to deliver on its first commercial contract for a wave power farm.
The transaction also extends a loan facility of $2.6 million (GBP 1.5 million).
Ocean Power developed the Pelamis Wave Energy Converter, which generates 750 kilowatts of electricity from offshore wave motion. The company’s first order is from a Portuguese consortium, which will install the system. OPD expects to install and commission the first stage of the project during the summer of 2006.
Yesterday, we reported that GE Finance is expanding its renewable energy financial services unit to serve this growing market. Energy Financial Services is seeking to grow its renewable energy investments to more than $3 billion by 2008.
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