A deal, which could see Ocean Power Technologies develop a demonstration wave power station in Japan, was signed with a consortium of three leading Japanese companies it was announced yesterday (8th October). The contract will also see OPT becoming a member of the Tokyo Wave Power Initiative, a committee including the city of Tokyo, regional governments and national agencies involved in the promotion of new energy sources.

The Japanese consortium that signed the deal comprises Idemitsu Kosan Co., Mitsui Engineering & Shipbuilding Co., and Japan Wind Development Co.

The initial phase of the project, explained the company, will be for OPT and the consortium to work with the Japanese government to increase the recognition of wave power in Japanese energy policy, and to identify favorable sites for OPT wave power stations and assess their commercial prospects. Subject to the successful identification of a project site and completion of economic assessments, the parties plan to enter into an agreement to build a demonstration plant with up to three of the company’s PowerBuoys.

The trial plant would, says the company, provide the basis for the expected building of a commercial-scale wave power station with an initial capacity of 10MW or more. Total output from the wave power station would be sold to electric utilities, and at 10MW, could provide power for up to 3,000 households in Japan.

Under the anticipated agreement to build the demonstration plant, OPT will sell the equipment for the power station to the consortium. For subsequent wave power stations, the consortium will provide manufacturing and maintenance of the power stations and on-going plant operations, while OPT will provide its PowerBuoy technology under license and also sell certain subsystems of the plant to the Consortium.

Mr. Akira Kurosaki, of the Business Development and Innovation Headquarters of Mitsui Engineering & Shipbuilding, said, "OPT’s in-ocean experience and technical strength make it a strong partner. Wave power is a very concentrated and predictable source of renewable energy that has great potential for Japan. We believe that OPT’s PowerBuoy technology will be an important part of our common vision of reducing dependence on imported fossil fuels."