Ocean Power Technologies, Inc., a developer of wave-energy technology that harnesses ocean wave resources to generate reliable, clean and environmentally-beneficial electricity, recently announced that it has signed a groundbreaking Settlement Agreement (“SA”) with 11 federal and state agencies and three non-governmental stakeholders for its utility-scale wave power project at Reedsport, Oregon.

This agreement between OPT and Federal and state agency, which is the outcome of extensive technical, policy, and legal discussions regarding appropriate prevention, mitigation and enhancement measures, and study requirements is going to prove a significant step toward commercializing clean energy in the country. Under the agreement, OPT becomes the first ever company to obtain license from the Federal Energy Regulatory Commission (“FERC”) for a commercial-scale wave power project in the US.

OPT said that this Settlement Agreement allows OPT to develop a 10-PowerBuoy, 1.5 megawatt capacity wave energy station in a phased manner. In developing the project, the company should proceed in a responsible manner that protects ocean resources and stakeholder interests.

The SA includes an innovative Adaptive Management Plan that will be used to identify and implement environmental studies that may be required, and to provide a blueprint for the application of this new information as the wave power station develops.

“The Settlement Agreement is a groundbreaking document that demonstrates the State’s commitment to partnering with the private sector and coastal communities to explore how we can tap into the renewable resource of ocean waves to power our communities. The manufacture of the first buoy has already created dozens of green-energy jobs in Oregon and when the 10-buoy wave power project is built, a whole new industry will be created to benefit our coastal communities. This is an exciting time for our State and I look forward to continuing to foster this new industry in Oregon in a way that is sensitive to marine habitat and continues to value this important resource for Oregon’s fishermen,” Oregon Governor, Ted Kulongoski, said.

Dr. George W. Taylor, Executive Chairman of OPT, said that the agreement clearly reflects OPT’s commitments to the protecton of environment while producing energy using wave-power. The OPT Chairman also pointed out that this SA sets an example of successful private-public partnership in attaining important common goals of sustainable development.

OPT further informed that manufacturing of the first 150 kilowatt PB150 PowerBuoy is already underway at Oregon Iron Works under its contract with OPT. The 10-buoy wave farm is expected to be connected to the grid after receipt of the FERC license and additional funding, supplying clean energy to approximately 1,000 homes.