Contract award marks the start-up of the first commercial wave energy
station in North America
CLACKAMAS, Ore.--(BUSINESS WIRE)--Dec. 4, 2009--
Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange
AIM: OPT) ("OPT" or the "Company") announces that it has selected Oregon
Iron Works (“OIW”) of Clackamas to begin construction of its first
commercial wave energy PowerBuoy® system in North America, to be
installed off the Oregon coast near Reedsport. Oregon Iron Works is an
Oregon company with an emerging reputation as an international leader in
“green tech” manufacturing. The partnership is the direct result of
Oregon Governor Ted Kulongoski’s leadership in bringing green jobs and
renewable energy to the Oregon economy and his commitment to the
responsible development of wave energy as a commercially viable
renewable energy source.
Construction of this first PowerBuoy system represents Phase One of an
expected 10-PowerBuoy Reedsport wave power station, the first
commercial-scale facility of its type in North America, which will
generate approximately 1.5 megawatts of electricity. The nine additional
PowerBuoys will be constructed and installed under Phase Two of the
project.
Governor Kulongoski joined Mark Draper, CEO of OPT, and Terry Aarnio,
Chairman, Oregon Iron Works, and Reedsport Mayor Keith Tymchuk, in
celebrating the announcement at the Oregon Iron Works Clackamas facility.
OPT and OIW estimate that construction of the first PowerBuoy PB150 wave
energy device, rated at a capacity of 150 kilowatts, will create or
sustain approximately 30 jobs over the next nine months. Another Oregon
company headquartered on the Oregon south coast, Sause Bros., is
intended to play a key role in transporting and deploying the buoy by
barge.
PNGC Power, a regional generation and transmission public electric power
cooperative, may purchase some of the electricity on behalf of their
Northwest customers. PNGC has provided partial funding for Phase One of
the Reedsport project. It is estimated that completion of the two-phase
project will create or sustain over 150 people in the fabrication,
assembly, installation and maintenance of the Reedsport power station.
“The partnership that we are developing with OPT and other Oregon
companies fits perfectly with our goal of providing jobs for Oregon’s
green economy,” said Governor Kulongoski. “It’s exciting to see that
Oregon has the chance to play a leading role in the development of this
global industry and help achieve our national goals of energy security
and reduction of our dependence on fossil fuels.”
Mark Draper, CEO of OPT, said: “OPT has identified the Oregon Coast as
one of the world’s top sources for future wave energy development, and
Governor Kulongoski’s leadership has helped to enable the realization of
its potential to create green jobs and prosperous coastal communities.
We are committed to responsible development of renewable energy
resources, and look forward to playing our part in that positive future.
”
As announced previously, OPT is in the advanced stages of completing its
first PB150 in the UK for deployment in the Orkneys, Scotland mid next
year. The technology development for this device will also be applied
for projects in North America.
“Our workers are helping the Pacific Northwest become the center of
excellence in green tech/clean tech manufacturing and we are proud to
continue that tradition of leadership in American manufacturing by
building the world’s best renewable ocean energy devices for OPT,” said
Terry Aarnio, Chairman, Oregon Iron Works. “This project demonstrates
that Oregon intends to enhance its environmental reputation by building
an economy on the leading edge of the green wave”, added Aarnio.
Description of the Reedsport Power Station Project
The PowerBuoy PB150, which is the result of more than 15 years of
research and development, uses the rise and fall of waves to move the
buoy up and down and drive an electric generator inside the buoy. The
electricity is then conditioned and transmitted ashore as high-voltage
power via an underwater cable. The Reedsport wave power station will be
located approximately 2.5 miles off the coast and connect directly to
the Bonneville Power Administration’s Gardiner Substation. PNGC Power
has signed an agreement with OPT and may purchase some of the
electricity generated in Phase Two of the project. OPT plans to place a
total of up to ten PB150 units at Reedsport over the next two to three
years, with funding from the Department of Energy, federal and Oregon
state tax credits, and investment from OPT and other companies. Most of
the buoy will sit below the ocean’s surface, making the device nearly
invisible from the shoreline.
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 Oregon Iron Works
Oregon Iron Works, Inc. is a world-class complex metal fabricator and
systems integrator, with precision machining capabilities. OIW works
with various industries, including marine, ocean renewable energy,
aerospace, hydroelectric, nuclear, bridge, commercial, and defense
manufacturing. OIW has extensive experience in all levels of metal
fabrication, from custom design and prototype development to large-scale
production, outfitting, and testing. Founded in 1944 in Portland, OR,
this innovative small business has been under the same management since
1974. It has nearly 400 employees and is now headquartered in Clackamas,
OR with additional manufacturing facilities in Vancouver, WA. More
information is available at www.oregoniron.com
About PNGC Power
Information is available for PNGC Power at www.pngcpower.com
Source: Ocean Power Technologies, Inc.
Ocean Power Technologies, Inc.
Mark R. Draper,
+1-609-730-0400
Chief Executive Officer
or
Charles F.
Dunleavy, +1-609-730-0400
Chief Financial Officer
or
Nomura
Code Securities Limited
Juliet Thompson, Richard Potts
+44
20 7776 1200
or
Media Contact:
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Neil
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