PENNINGTON, N.J.--(BUSINESS WIRE)--Oct. 8, 2009--
Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange
AIM: OPT) (“OPT” or “the Company”) is pleased to announce it has signed
an exclusive agreement with a consortium of three leading Japanese
companies to develop a demonstration wave power station in Japan. The
Japanese consortium comprises Idemitsu Kosan Co., Mitsui Engineering &
Shipbuilding Co., and Japan Wind Development Co. (the “Consortium”).
Further, OPT 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.
This agreement is the Company’s first project in Japan and is in line
with OPT’s global strategy to form alliances with strategic partners in
key markets. OPT now has a range of power generation projects globally,
including those in Oregon and Hawaii, USA; Scotland and Southwest
England; Spain; Australia; and Japan.
The initial phase of the project will be for OPT 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 OPT
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 OPT wave power station with an initial
capacity of 10MW 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, OPT
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 OPT will provide its PowerBuoy technology under
license and also sell certain subsystems of the plant to the Consortium.
Idemitsu Kosan is a leading Japanese energy company; Mitsui Engineering
& Shipbuilding is a major industrial business focused on machinery and
shipbuilding; and Japan Wind Development primarily develops and operates
wind power stations.
Commenting on the agreement, OPT’s 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.”
Japan’s recently elected Prime Minister, Yukio Hatoyama, has pledged to
target a 25 percent cut in green-house gas emissions from 1990 levels by
2020. The government also plans to introduce a “feed in” tariff, or
other financial reward, for renewable energy production as part of its
intentions to boost renewable energy sources to about 10 percent of
primary energy supply by 2020.
Mr. 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.”
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, clean and
environmentally-beneficial electricity. OPT has a strong track record in
the advancement of wave energy and participates in a $150 billion annual
power generation equipment market. The Company's proprietary PowerBuoy®
system is based on modular, ocean-going buoys that capture and convert
predictable wave energy into low-cost, 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 technology and systems are insured by Lloyds
Underwriters of London. OPT is headquartered in Pennington, New Jersey
with offices in Warwick, UK. More information can be found at www.oceanpowertechnologies.com.
About Mitsui Engineering & Shipbuilding Co.
The principal business of Mitsui Engineering & Shipbuilding (“MES”) is
machinery and shipbuilding. With annual revenues in excess of $6.5
Billion, MES’ activities include manufacturing and sales of various
types of industrial machinery, such as engines, boilers, gas turbines
and robotic systems, and plant construction for water and waste
treatment facilities, bridges, and watergates. Its shipbuilding business
comprises a broad array of natural resource carriers and hull tankers.
MES is a publicly-held company with over 10,000 employees.
About Idemitsu Kosan Co.
Idemitsu Kosan Co. is a diversified energy business. The focus of its
business development is energy, food and the environment. In addition to
its activities in the petroleum products sector, Idemitsu has extensive
interests in basic chemicals, plastics, other natural resources,
geothermal energy, electronic materials, agri-business and engineering.
The company has over 7,800 employees and annual revenues in excess of
$38.0 Billion, and is publicly-held.
About Japan Wind Development Co.
Japan Wind Development Co. focuses on the wind power generation-related
business, with two business segments. The Wind Power Generation Station
Development segment is engaged in the development and operation of wind
power stations, as well as the agent sale of wind power generators and
accumulators. The Wind Power Generation segment is engaged in the sale
of electric power in Japan and overseas markets. The Company is listed
on the Tokyo Stock Exchange, with annual sales over $70.0 million.
Source: Ocean Power Technologies, Inc.
Ocean Power Technologies, Inc.
Mark R. Draper, Chief
Executive Officer, +1 609 730 0400
Charles F. Dunleavy, Chief
Financial Officer, +1 609 730 0400
or
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Juliet Thompson, Richard Potts, +44 20 7776
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