Ocean Power Technologies (Australasia) Pty Ltd, a subsidiary of Ocean Power Technologies, Inc. (NASDAQ:OPTT)(OPT.L) announced that, in partnership with Leighton Contractors Pty Ltd, it has received a A$66.46 million grant from the Federal Government of Australia to build a 19-MW wave power project off the coast of Victoria, Australia.
The award is one of four renewable energy projects approved by the Federal Government after considering over 30 applications, and is the sole wave energy venture.
The Government funding will be used by OPTA and Leighton to advance the construction of a wave power station to be built in three phases off the coast of Victoria near the city of Portland. The project is to be developed by a special purpose company, Victorian Wave Partners Pty Ltd, that was formed by OPTA and Leighton following the signing of an agreement in December 2008 to collaborate in pursuing wave power projects off the east and south coasts of Australia.
It is expected that work will begin on the project by the second quarter of calendar year 2010.
Dr. George W. Taylor, founder and Executive Chairman of OPT, and Chief Executive of OPTA, said: “Our Victoria, Australia project is expected to be one of the first utility-scale wave energy projects globally, and the latest example of OPT’s lead in turning wave energy technology into a commercial reality worldwide.”
The award was announced by the Australian Resources & Energy Minister, Martin Ferguson, under the Renewable Energy Demonstration Program (REDP), which has awarded funding totaling A$235 million to four renewable energy projects, aimed at meeting the Government’s target of generating 20% of the country’s energy needs from renewable sources by 2020.
The grant is conditional on the signing of a Funding Deed stipulating the conditions for the grant, which includes funding milestones. Victorian Wave Partners will be required to seek additional funding to enable the completion of the 19-MW wave power station.
Pennington, N.J.-based Ocean Power Technologies, Inc. has developed a proprietary PowerBuoy® system based on modular, ocean-going buoys that capture and convert predictable wave energy into electricity. The Company is recognized as a leading developer of wave-energy generation systems.
Leighton Holdings Limited (ASX:LEI) is the parent company of Australia’s largest project development and contracting group. Founded in Victoria in 1949, the organization has grown from a small, privately owned civil engineering firm into a group that includes Thiess, John Holland, Leighton Properties, Leighton Contractors, Leighton International and Leighton Asia. With 37,000 employees, the Group’s operations are throughout the Asia-Pacific region on projects in Australia, New Zealand, Hong Kong, Indonesia, Malaysia, Singapore, the Philippines, Thailand, Vietnam, China, Taiwan, Sri Lanka, Macau, India and the Gulf Region.
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