A grant of A$66.46 million (approx $61m), to build a 19 MW wave power project off the coast of Victoria, has been awarded by the Federal Government of Australia to a partnership between Ocean Power Technologies (Australasia) Pty Ltd and Leighton Contractors Pty Ltd. The award was announced on Friday (6th November) by the Australian Resources & Energy Minister, Martin Ferguson, as part of the government's Renewable Energy Demonstration Program (REDP).

The Government funding will be used by OPTA and Leighton to advance the construction of a wave power station to be built in three phases off the coast of Victoria near the city of Portland, with a total expected capacity of 19 MW – sufficient to fulfill the energy needs of approximately 10,000 homes. The project is to be developed by a special purpose company, Victorian Wave Partners Pty Ltd, that was formed by OPTA and Leighton following the signing of an agreement (as announced December 19, 2008) to collaborate in pursuing wave power projects off the east and south coasts of Australia. It is expected that work will begin on the project by the second quarter of calendar year 2010.

Dr. George W. Taylor, founder and Executive Chairman of OPT, and Chief Executive of OPTA, said: "We are delighted to have received this vote of confidence from the Australian Federal Government, which has taken a bold step to spur adoption of renewables and wave energy in particular. Our Victoria, Australia project is expected to be one of the first utility-scale wave energy projects globally, and the latest example of OPT’s lead in turning wave energy technology into a commercial reality worldwide." Taylor, who was born and educated in Australia, continued, "We are delighted to have this opportunity to use OPT's PowerBuoy® technology in Australia."

The grant is conditional on the signing of a Funding Deed stipulating the conditions for the grant, which includes funding milestones. Victorian Wave Partners will be required to seek additional funding to enable the completion of the 19 MW wave power station.