Ocean Power Cancels U.S. Wave Project, Gets Funding in Australia

Apr 01, 2014 10:54 am ET

April 1 (Bloomberg) -- Ocean Power Technologies Inc., a producer of wave-energy systems, canceled a project off the U.S. West Coast while moving forward with an initiative in Australia.

Ocean Power and the U.S. Energy Department terminated an agreement to deploy one of its PowerBuoys off the coast of Oregon because it was unable to obtain financing to cover “a considerable increase in costs,” the Pennington, New Jersey- based company said in a filing today with the U.S. Securities and Exchange Commission. The company said the cancellation won’t affect its finances.

Ocean Power also said it received an A$5 million ($4.6 million) grant from the Australian Renewable Energy Agency for a planned wave-power project off the coast of Victoria, Australia. The agency has pledged as much as A$66.5 million for the project, and the company will be required to to raise “significant additional funding.”

Ocean Power said in February that it’s working with Lockheed Martin Corp. to develop the 62.5-megawatt offshore project.

The company’s PowerBuoys move up and down as waves rise and fall, converting mechanical energy into electricity that’s sent to shore through underwater cables.