Future Energy

An Environmental Author Looks at Ocean Energy

Jon Luoma writing at Yale environment360, the environment blog of the Yale School of Forestry and Environmental Studies, offers a review of ocean energy (see Capturing the Ocean's Energy).  Nothing startlingly new but an interesting overview all the same.  The companies he highlights include:

• Pelamis Wave Power Ltd. (private)
• Verdant Power (private)

• Ocean Power Technologies (NASDAQ: OPTT)

Wave Power - No Smooth Sailing.

Yesterday Kate Galbraith writing in the New York Times took a look at wave power (see Power From the Restless Sea Stirs the Imagination, September 22nd) and it wasn't a pretty picture.  Taking a less optimistic note than the Economist magazine back in June (see my post dd. June 9th - Wave Power Rises Again?) Ms. Galbraith cites technical problems (sunken turbines, broken turbine blades and detached moorings), costs up to 10X those of wind power and potential conflicts with fishermen and others as among the significant issues facing the industry.

Despite the problems, she identifies at least four companies that are pressing ahead, including:

• Finavera Renewables Inc. (TSXV: FVR)
• Verdant Power (private)
• Ocean Power Technologies Inc. (NASDAQ: OPTT)
• Pelamis Wave Power Ltd. (private)

(Notably, two of the companies, Finavera and Verdant, are Canadian.)

Verdant Power is also the subject of another recent article in the Washington Post.  Writing in the Post on September 20th, Robin Schulman highlights Verdant's pilot project in New York's East River (see N.Y. Tests Turbines to Produce Power).  The project is supported by New York's Mayor, Michael Bloomberg and his policies intended to make New York the greenest major city in the U.S. and seems to be raising some big expectations.

"Engineers, policymakers and energy experts say projects like the East River tidal turbines are already placing this city at the urban vanguard of energy production. They say New York City is uniquely positioned to advance sustainable energy projects because of the city's enormous need for power, its high electricity costs, and the pressure for new sources created by its unusual rule that 80 percent of energy must be generated within the city."

Wave Power Rises Again?

The most recent issue of the Economist takes a brief but interesting look at the resurgence of wave power development in recent years (see The Coming Wave, June 5th).  As the article says, wave power is still in its infancy.  However, the magazine is able to identify a number of companies that are on the cusp of deploying commercial systems.   Going a step further, U.K's Pelamis Wave Power Ltd., already has a commercial multi-unit wave farm in place off the coast of Portugal, although, the company's website describes it as being in the commissioning phase. 

While the Economist identifies five companies currently pursuing commercial development of wave power, only two are publicly listed, including:

• Finavera Renewables Inc. (TSXV: FVR)

In December 2007, this Vancouver based company signed an agreement with Pacific Gas & Electric to begin installing its Aquabouy generators in a wave farm off the California coast by 2012.

• Ocean Power Technologies Inc. (NASDAQ: OPTT)

The company has been conducting ocean trials off the coast of New Jersey since 1997 and is in a joint venture with Iberdrola SA to establish a 1.39 MW wave farm off the northern coast of Spain.

The companies that are profiled appear to be taking a variety of approaches to developing commercially viable technologies.  (Wikipedia gives a good overview of the science behind wave power.)

As the article points out, the ideas for wave power have been around for decades but the public policy support and economic environment has been lacking.  However ....

"But at last there are signs of change. Big utilities are taking the technology seriously, and are teaming up with wave-energy companies. Venture-capitalists are piling in too, as they look for new opportunities. Several wave-energy companies are thought to be planning stockmarket flotations in the coming months."

Among the private companies examined, those "piling in" look to be the A-list of renewable energy investors, including the likes of Blackrock Investment Managers, 3i, Carbon Trust, Norsk Hydro Technology Ventures and Sigma Capital, among many others.

Enjoy!