OPT wins $4.8m from US Department of Energy

 

TIDMOPT 
 
RNS Number : 5388S 
Ocean Power Technologies Inc 
13 September 2010 
 

 
 
 
    OCEAN POWER TECHNOLOGIES AWARDED $4.8 MILLION BY US DEPARTMENT OF ENERGY 
 
Pennington, New Jersey - September 13, 2010 - Ocean Power Technologies, Inc. 
(Nasdaq: OPTT and London Stock Exchange AIM: OPT) ("OPT" or the "Company") is 
pleased to announce that it has won two new funding awards totaling $4.8 million 
from the US Department of Energy ("DoE"). 
 
OPT plans to use the first award, for $2.4 million, in connection with the 
construction and deployment of one of its PB150 PowerBuoys  at Reedsport, 
Oregon, as part of the first proposed commercial wave power project in the US. 
Deployment of the 150 kilowatt peak-rated PB150, which is currently under 
construction, is expected to occur in 2011. This is the second award to OPT by 
the DoE in connection with the Reedsport project. In 2008, OPT received $2.0 
million to use towards the construction of the PB150 PowerBuoy. 
 
In August 2010, the Oregon project received a major boost when the Company 
signed an agreement with 14 stakeholders to support the responsible, phased 
development at the Reedsport site of a 10-PowerBuoy wave power station. With a 
peak generating capacity of 1.5MW, it is equivalent to the power needs of about 
1,000 homes. This agreement represents a key step towards the granting of a 
license by the Federal Energy Regulatory Commission. 
 
The second award being announced today is also for $2.4 million and it is 
intended to be used for the design and development of OPT's next generation 
500kW PowerBuoy wave power system, the PB500. The technology development will 
focus on increasing the PB500's power extraction efficiency, implementing a 
"Design-for-Manufacture" approach and reducing maintenance costs, all of which 
aim to achieve lower installed capital and energy costs and make wave power more 
competitive with fossil fuels. This award follows an initial $1.5 million award 
announced in April 2010, taking the total DoE funding in connection with the 
PB500 to $3.9 million. 
 
Charles F. Dunleavy, Chief Executive Officer of the Company, said: "These awards 
are another significant step in a global drive to make wave power a commercial 
reality. OPT's programs of work under these awards are in accord with the 
Department of Energy's objectives to help develop innovative technologies that 
contribute to the clean energy economy. The funds will help OPT to accelerate 
the commercialization of our PB150 wave power stations in the US and facilitate 
the development of our 500 kilowatt-rated PowerBuoy technology. We appreciate 
the DoE's continued support of OPT's programs to harness wave power as a major 
source of renewable energy." 
 
Issued to OPT under a competitive process, the awards were announced by the US 
Secretary of Energy, Steven Chu, to accelerate the technological and commercial 
readiness of emerging marine and hydrokinetic technologies, which seek to 
generate renewable electricity from the nation's oceans and free-flowing rivers 
and streams. 
 
OPT's receipt of funds under these awards is subject to the negotiation of 
definitive contracts and confirmation of cost sharing sources. OPT intends to 
seek third party funding to satisfy its cost sharing obligations under the DoE 
grants. 
 
 
 
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 and clean and environmentally-beneficial electricity. OPT has 
a strong track record in the advancement of wave energy. The Company 
participates in a $150 billion annual power generation equipment market. OPT's 
proprietary PowerBuoy  system is based on modular, ocean-going buoys that 
capture and convert predictable wave energy into 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 systems are insured by Lloyds Underwriters of London. OPT is 
headquartered in Pennington, New Jersey with an office in Warwick, UK. More 
information can be found at www.oceanpowertechnologies.com. 
 
 
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Contact information: 
+----------------------------------------+---------------------------------+ 
| Ocean Power Technologies, Inc.         |                                 | 
| George W. Taylor, Executive Chairman   | Telephone: [phone]      | 
| Brian M. Posner, Chief Financial       |                                 | 
| Officer                                |                                 | 
+----------------------------------------+---------------------------------+ 
| Nomura Code Securities Limited         |                                 | 
| Juliet Thompson, Richard Potts         | Telephone: [phone]     | 
+----------------------------------------+---------------------------------+ 
| Media Contact:                         |                                 | 
| Corfin Public Relations Limited        |                                 | 
| Neil Thapar, Claire Norbury            | Telephone: [phone]     | 
|                                        |                                 | 
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