Ocean Power Technologies Inc (LON:OPT), the company behind technologies to harness wave power and turn it into electricity, has signed what it called a groundbreaking Settlement Agreement (SA) in the US with 11 federal and state agencies and three non-governmental stakeholders for its utility-scale wave power project at Reedsport, Oregon.

This agreement represents a major step towards the grant of the first license ever issued by the Federal Energy Regulatory Commission (FERC) for a commercial-scale wave power project in the US. The SA supports the responsible, phased development by OPT of a 10-PowerBuoy, 1.5 megawatt capacity wave energy station that protects both ocean resources and stakeholder interests. Manufacturing of the first 150 kilowatt PB150 PowerBuoy is already underway at Oregon Iron Works under its contract with OPT. The 10-buoy wave farm is expected to be connected to the grid after receipt of the FERC license and additional funding, supplying clean energy to approximately 1,000 homes.

The wave energy SA was reached after extensive technical, policy, and legal discussions regarding appropriate prevention, mitigation and enhancement measures, and study requirements. It covers a broad array of resource areas including aquatic resources, water quality, recreation, public safety, crabbing and fishing, terrestrial resources, and cultural resources. The SA includes an innovative Adaptive Management Plan that will be used to identify and implement environmental studies that may be required, and to provide a blueprint for the application of this new information as the wave power station develops.

Dr George Taylor, OPT’s executive chairman, said: “This agreement demonstrates OPT's commitment to develop wave power in a way that respects the environment and the needs of all who rely on ocean resources for many different uses. It shows how the private sector can work together effectively with federal, state, municipal and local groups to attain important common goals of sustainable development. I commend the State of Oregon, the City of Reedsport, and all of the stakeholders for supporting the use of OPT's innovative wave power technology as it transitions to a fully commercial product.”

Last month OPT reported a 26% rise in full year revenues to $5.1m with net losses rising to $19.2m from $18.3m previously. Cash and cash equivalents stood at $66.9m in April. During the year the company deployed one of its PowerBuoy systems at the Marine Corps Base in Hawaii and continued to…

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