OPT Cancels Wave Energy Project off Oregon

A wave energy park proposed to be developed off the coast of Reedsport, Oregon, has been cancelled due to financial issues.

Ocean Power Technologies (OPT) and the U.S. Department of Energy (DOE) agreed in principle on March 28, 2014 to proceed with a termination by mutual agreement of the company’s contract with the DOE covering the ocean deployment of a single PowerBuoy 2.5 miles offshore near Reedsport.

The Reedsport project encountered a considerable increase in costs related to the project. OPT was unable to obtain the required financing directly related to the completion of the project. In light of the determination to terminate by mutual agreement, OPT and the DOE are discussing the steps necessary to close out the project. The company does not expect the termination of the contract to have a material impact on its reported financial position.

[mappress]

Press release, April 2, 2014; Image: OPT