31st Jul 2006 07:02
Ocean Power Technologies Inc31 July 2006 Ocean Power Technologies, Inc. For Immediate Release 31 July 2006 AWARD OF CONTRACT TO BUILD WAVE FARM IN SPAIN Ocean Power Technologies, Inc ("OPT", or the "Company") (London Stock Exchange:AIM-OPT) is pleased to announce the signing of the Engineering, Procurement andConstruction (EPC) contract for the next phase of building a 1.25 MegaWatt OPTwave power station off the coast of the Cantabria region in northern Spain. A special purpose company, with Iberdrola S.A. as its major shareholder, hasbeen established in Spain to purchase the power station from OPT. Iberdrola isone of the largest renewable energy utilities in the world, with over 3,800MegaWatts of renewable energy generating capacity and the commitment to achieve6,200 MW in 2008. Other shareholders of the new company include Total S.A., OPT,the industrial development agency of the Spanish region of Cantabria, and theenergy agency of the government of Spain. A Joint Development Agreement was signed by the parties in 2004 to develop theworld's first commercial wave power station, a 1.25 MW OPT wave power stationnear Santona, on the northern Spanish coast. As noted at the time by RobertoLegaz, Director of Renewable Energy at Iberdrola, successful completion of thisinitial wave power station is expected to lead to the installation of hundredsof megawatts of OPT's PowerBuoy(TM)wave energy farms off the northern coast ofSpain over the next several years. Prior to the award of this EPC contract, OPTcompleted the first phase of the project, during which it completed systemdesign, characterisation of the deployment site, assessment of wave energyresources, and determination of the transmission cable route. Under the EPC contract, the wave energy plant will utilise OPT's patentedPowerBuoy technology and work performed will include the 'turnkey' constructionand installation of the first PowerBuoy system, subsea power transmission cable,underwater substation and grid connection, all of which will be supplied by OPT.The EPC contract takes immediate effect with the order of long lead items andthe release of the steel fabrication sub-contract to a local Spanish supplier.This contract will begin producing revenues for OPT next month, which willtherefore contribute to earnings in the first half of financial year 2007 (thesix months to 31 October 2006). Dr. George W. Taylor, Chief Executive Officer of OPT, said: "Signing an EPCcontract with a major renewable energy provider like Iberdrola is an importantvalidation of OPT's PowerBuoy technology and our ability to commercialise it. Italso sends a strong signal that wave power is ready to make a substantialcontribution to changing global energy needs." Mark Draper, Chief Executive of Ocean Power Technologies Ltd, the Company'sEuropean group which is managing the project, said, "We are delighted to havethis significant EPC contract for OPT's first project in Europe. This projecthas the support of a strong local partnership, and it bodes well for the futureof OPT. I look forward to seeing PowerBuoys off the coast of Cantabria in thevery near future." For further information, please contact: Ocean Power Technologies, Inc Dr. George W. Taylor, Chief Executive Officer Telephone: +1 609 730 0400 Charles F. Dunleavy, Chief Financial Officer Telephone: +1 609 730 0400 Corfin Communications Ben Hunt, Neil Thapar Telephone: +44 20 7929 8989 Background Information Ocean Power Technologies, Inc. OPT is the world's first publicly listed wave power company. It iscommercialising its proprietary technology for the generation of electricalpower using the energy of ocean waves. OPT's wave energy systems are based onmodular, buoy-like structures, called PowerBuoysTM, which are "intelligent"systems capable of responding to differing wave conditions. The Company'socean-tested systems have the potential to provide cost competitive, cleanelectrical power on a large scale. For further information, see the Company'swebsite: www.oceanpowertechnologies.com. This information is provided by RNS The company news service from the London Stock Exchange ENRelated Shares:
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