Ocean Power Tech inks first commercial deal near USD 1m

Ocean Power Technologies, Inc (NASDAQ:OPTT), or OPT, has signed the first commercial deal for its PB3 PowerBuoy device -- a lease contract with Mitsui Engineering and Shipbuilding Co Ltd (TYO:7003), or MES, worth USD 975,000 (EUR 873,000).

The PB3 PowerBuoy leased by MES will be installed off Kozu-island in Japan after a stage gate review, the US wave energy firm said yesterday. Work on the project started in March following a letter of intent between the parties.

OPT’s president and chief executive George H Kirby said the deal was a significant commercialisation milestone for the company. "MES has been a strong strategic partner in the development of the PowerBuoy, and this milestone will allow MES to demonstrate the flexibility of the PB3 power and communications platform in sea conditions off the coast of Japan," he added. The company hopes the project could give it access to opportunities in Japan and other markets in the region.

As part of the agreement, OPT will provide engineering support, associated deployment planning and logistics and ocean performance data collection and analysis. The partners will also cooperate on an advanced control algorithm to assess increased ocean wave energy capture for potential customers in the region.

(USD 1.0 = EUR 0.895)

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