OPT reaches agreement with power co-op on wave energy

Ocean Power Technologies (“OPT”) (LSE: OPT) and Pacific Northwest Generating Cooperative (“PNGC Power”) have signed an agreement to work cooperatively on the company’s development of a wave park near Reedsport, Oregon.

OPT expects to install its ocean-tested PowerBuoy® systems initially generating a total of 2 MW approximately 2.5 miles off the coast at a depth of 50 meters.

OPT has been issued a preliminary permit by the Federal Energy Regulatory Commission (FERC) for up to 50 MW of capacity at the site, and plans to develop, own, and operate the initial 2 MW wave power park.

PNGC Power is a Portland, Oregon-based electric power cooperative serving 15 distribution cooperatives with service territory in seven western states. In addition to supporting OPT in the permitting process and power transmission for the project, PNGC Power will work cooperatively with OPT to pursue a power purchase agreement, under which PNGC Power would purchase the electrical energy output of the 2MW wave power park from OPT.

PNGC Power will also provide its expertise regarding grid interconnection and in meeting the standards of the Bonneville Power Administration, which operates much of the region’s power system.

“As PNGC Power strives to maintain competitive prices and reliable service for its members we are increasingly looking at promising new technologies to meet load growth,” said PNGC Power President and Chief Executive Officer, John Prescott. “Our participation in the development of the Reedsport OPT Wave Park demonstrates our member cooperatives’ commitment to explore alternative energy resources to meet customer needs into the future.”

PNGC Power plans to provide a significant portion of the funds to build and install the first PowerBuoy at the Reedsport site.

The agreement also provides a framework under which PNGC and OPT may continue to work together in connection with the phased scale-up to a 50MW wave power park. Specifically, PNGC Power will have the option to participate in ownership or power purchase in future commercial phases of the project.

OPT has been issued a preliminary permit by FERC for the Reedsport project.

Ocean Power Technologies develops and is commercializing proprietary systems that generate electricity by harnessing the renewable energy of ocean waves.

Read our coverage of OPT here.