9th Aug 2005 07:00
Ocean Power Technologies Inc09 August 2005 NEWS RELEASE Ocean Power Technologies, Inc. 1590 Reed Road Pennington, New Jersey 08534 USAFor Immediate Release OCEAN POWER TECHNOLOGIES SEES OPPORTUNITES IN US ENERGY BILL Pennington, NJ, USA, 9 August 2005 - Ocean Power Technologies, Inc ("OPT" or the"Company") (London Stock Exchange: AIM-OPT). The United States Energy Bill wassigned by President George W. Bush yesterday, and, for the first time hasincluded specific language to provide financial incentives for wave energy. Commenting on the Energy Bill, Dr. George W. Taylor, CEO said: "We are delighted that our focused efforts over the last few years have paid offwith the significant inclusion of wave power in the Energy Bill. OPT is alreadywell positioned in the United States, having a contract to build agrid-connected wave power station for the US Navy in Hawaii and a contract withthe New Jersey Board of Public Utilities to build a demonstration wave powersystem. We expect these new incentives of the US Government to result inadditional business for OPT with US utilities and others." For further information, please contact: Dr. George W. Taylor Charles F. DunleavyChief Executive Officer Chief Financial OfficerTelephone: +1 (609) 730-0400 Telephone: +1 (609) 730-0400E-mail: [email protected] E-mail: [email protected] Michael Brennan Ken Cronin/Robert SpeedEvolution Securities Limited Gavin Anderson & Co. Telephone: +44 20 7071 4300 Telephone: +44 20 7554 1400 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. The US Energy Bill and Wave Power The 2005 Energy Bill is the first major piece of U.S. legislation to recognizethe vast potential of wave power for deriving clean, renewable energy from ourocean. This pivotal legislation includes many incentives which are expected toaccelerate the development and commercialization of OPT's PowerBuoyTMtechnology, including: Wave Energy Resource Assessment The Secretary of Energy is directed to assess the potential of wave energyresources within the United States and report back to Congress within two years.This study will assist wave energy project developers in finding the mostsuitable and productive locations for OPT's PowerBuoy technology. Federal Purchase Requirement and Federal Lands The Bill authorizes the Federal government to increase its purchase of renewableenergy, including Ocean Energy, from 2.5% to 7.5% of total power consumption inthe next 7 years. This will represent the purchase of more than $160 million ofgreen power annually. Further, under the leadership of the Secretary of theInterior the National Academy of Sciences will study the potential of developingwind, solar and ocean energy resources on Federal land available. Thiscommitment to purchase power coupled with a resource assessment of wave energyon Federal lands will help accelerate the production of wave generated power. Rural and Remote Community Electrification Grants The legislation authorizes $20 million in grants to be appropriated based foreach fiscal year 2006-2012 for the purpose of supporting the growth of renewableenergy in rural and remote communities. Wave power - such as OPT's PowerBuoy isthe only form of ocean energy that was permitted under this section oflegislation. Grants for Energy Security in U.S. Territories The Secretary of Energy was direct to identify and evaluate strategies orprojects with the greatest potential for reducing the dependence on importedfossil fuels, including the increased use of renewable energy in U.S.Territories. This $6 million grant program includes wave energy, but not anyother ocean energy source, and is focused on resources that will have thegreatest impact on reducing future disaster losses and seem to be the best fitthe region where it will be carried out. Research and Development The Bill authorizes funding of $632 million in FY07, $734 million in FY08 and$852 million in FY09 for renewable energy research, development, demonstrationand commercial application projects, including wave power. These programs willbe conducted, based on increasing the conversion efficiency, decreasing the costof renewable energy generation, promoting the diversity of the energy supply,decreasing the dependence of the United States on foreign energy supplies,improving energy security and decreasing the environmental impact ofenergy-related activities. Incentives for Innovative Technologies In order to stimulate the development and commercialization of promisinginnovative technologies - such as OPT's PowerBuoy, the bill authorizes taxcredits and 80% loan guarantees for renewable energy systems that employ new orsignificantly improved technologies as compared to commercial technologies inservice at the time. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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