The M/V Sea Power arrived in the Western Isles today to

load up and transport the first of three Pelamis Wave Energy Converters to Portugal.

The machines will be delivered to the Port of Peniche where they will undergo final
assembly prior to commissioning and installation later this year at a site 5km off the
coast of northern Portugal, near to Póvoa de Varzim.

Last year Ocean Power Delivery (OPD) announced the signing of an order with a
Portuguese consortium, led by Enersis, to build the initial phase of the world’s first
commercial wave-farm to generate renewable electricity from ocean waves.
The first stage consists of three 750kW Pelamis machines with a combined rating of
2.25MW. A letter of intent has also been issued to order a further 28 Pelamis
machines before the end of 2006 subject to satisfactory performance of the initial
phase. When complete the eventual 22.5MW project is expected to meet the
average electricity demand of more than 15,000 Portuguese households whilst
displacing more than 60,000 tonnes per year of carbon dioxide emissions from
conventional generating plant.

Richard Yemm, Managing Director of OPD commented: “This is a tremendously
exciting day for OPD, our suppliers and the wave energy sector. We are delighted to
have reached this important milestone and we look forward to installing and
commissioning the project in Portugal this summer”.

In response to questions about why this first project has not been located within the
UK he replied: “Portugal has been quicker to prioritise exploitation of its wave energy
resource, and to recognise the commercial opportunity that it represents. The
decision where to build this project was not ours but our customers. The Portuguese
government has put in place a feeder market that pays a premium price for electricity
generated from waves compared to more mature technologies such as wind power.
This allows the commercial investment in early stage projects which is crucial to
move the technology forward. This is exactly the same approach that delivered the
wind industry in Denmark and Germany, which today has a turnover of over
€12billion/year with 60,000 employed worldwide.”

He commented further “In the UK the DTI has been supportive with Research and
Development grants, but has yet to offer a similar feeder market to that currently
available in Portugal. The Scottish Executive is now taking the lead with proposals
to deliver such a market. However this needs to be nailed down quickly or we may
miss the boat. Without a clear route to commercial deployment in UK waters soon,
the industrial opportunity is likely to move to Portugal”

By Clare Brodie
oceanpd.com