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Ocean Power Technologies Sees Opportunities in us Energy Bill
Ocean Power Technologies Sees Opportunities in us Energy Bill
Aug 09, 2005 at 12:00 AM EDT
Commenting on the Energy Bill, Dr. George W. Taylor, CEO said:
“We are delighted that our focused efforts over the last few years have paid off with the significant inclusion of wave power in the Energy Bill. OPT is already well positioned in the United States, having a contract to build a grid-connected wave power station for the US Navy in Hawaii and a contract with the New Jersey Board of Public Utilities to build a demonstration wave power system. We expect these new incentives of the US Government to result in additional business for OPT with US utilities and others.”
For further information, please contact:
Dr. George W. Taylor, Chief Executive Officer
Telephone: (609) 730-0400
E-mail: gtaylor@oceanpowertech.com
Charles F. Dunleavy, Chief Financial Officer
Telephone: (609) 730-0400
E-mail: cdunleavy@oceanpowertech.com
Michael Brennan, Evolution Securities Limited
Telephone: +44 207 071 4300
Ken Cronin/Robert Speed, Gavin Anderson Co.
Telephone: +44 207 554 1400
Background Information
Ocean Power Technologies, Inc.
OPT is the w orld's first publicly listed w ave pow er company. It is commercialising its proprietary technology for the generation of electrical pow er using the energy of ocean w aves. OPT's w ave energy systems are based on modular, buoy-like structures, called Pow erBuoysTM, w hich are “intelligent” systems capable of responding to differing w ave conditions. The Company's ocean-tested systems have the potential to provide cost competitive, clean electrical pow er on a large scale. For further information, see the Company's w ebsite: w w w .oceanpow ertechnologies.com.
The US Energy Bill and Wave Power
The 2005 Energy Bill is the first major piece of U.S. legislation to recognize the vast potential of w ave pow er for deriving clean, renew able energy from our ocean. This pivotal legislation includes many incentives w hich are expected to accelerate the development and commercialization of OPT's Pow erBuoy™ technology, including:
Wave Energy Resource Assessment
The Secretary of Energy is directed to assess the potential of w ave energy resources w ithin the United States and report back to Congress w ithin tw o years. This study w ill assist w ave energy project developers in finding the most suitable and productive locations for OPT's Pow erBuoy technology. Federal Purchase Requirement and Federal Lands
The Bill authorizes the Federal government to increase its purchase of renew able energy, including Ocean Energy, from 2.5% to 7.5% of total pow er consumption in the next 7 years. This w ill represent the purchase of more than $160 million of green pow er annually. Further, under the leadership of the Secretary of the Interior the National Academy of Sciences w ill study the potential of developing w ind, solar and ocean energy resources on Federal land available. This commitment to purchase pow er coupled w ith a resource assessment of w ave energy on Federal lands w ill help accelerate the production of w ave generated pow er.
Rural and Remote Community Electrification Grants
The legislation authorizes $20 million in grants to be appropriated based for each fiscal year 2006-2012 for the purpose of supporting the growth of renew able energy in rural and remote communities. Wave pow er – such as OPT's Pow erBuoy is the only form of ocean energy that w as permitted under this section of legislation.
Grants for Energy Security in U.S. Territories
The Secretary of Energy w as direct to identify and evaluate strategies or projects w ith the greatest potential for reducing the dependence on imported fossil fuels, including the increased use of renew able energy in U.S. Territories. This $6 million grant program includes w ave energy, but not any other ocean energy source, and is focused on resources that w ill have the greatest impact on reducing future disaster losses and seem to be the best fit the region w here it w ill be carried out.
Research and Development
The Bill authorizes funding of $632 million in FY07, $734 million in FY08 and $852 million in FY09 for renew able energy research, development, demonstration and commercial application projects, including w ave pow er. These programs w ill be conducted, based on increasing the conversion efficiency, decreasing the cost of renew able energy generation, promoting the diversity of the energy supply, decreasing the dependence of the United States on foreign energy supplies, improving energy security and decreasing the environmental impact of energy-related activities.
Incentives for Innovative Technologies
In order to stimulate the development and commercialization of promising innovative technologies – such as OPT's Pow erBuoy, the bill authorizes tax credits and 80% loan guarantees for renew able energy systems that employ new or significantly improved technologies as compared to commercial technologies in service at the time.