Ocean Power Technologies Awards Four New Contracts in Oregon

Ocean Power Technologies, Inc. (Nasdaq: OPTT), (“OPT” or the “Company”), a leading wave energy technology company, announced today that it is awarding four major new contracts to Oregon companies in connection with the manufacture of its PB150 PowerBuoy^® wave energy generating device, and its deployment off the coast of Reedsport, Oregon.

The new contracts, with the previously awarded contract to Oregon Iron Works (“OIW”) for the fabrication of the buoy’s steel structure, or spar, takes the total invested by OPT in the local economy to over $6 million, creating or saving up to 100 manufacturing and marine services jobs at the four companies and their suppliers. The contracts will also indirectly generate additional jobs for suppliers and service providers in the local coastal communities and the Portland area. The project will lead to further job creation in the coastal areas for the continuing operations and periodic maintenance of the PowerBuoy after its deployment.

With these new contracts, OPT and Oregon are entering an exciting phase of Oregon’s initiative to be a world leader in the responsible development of wave energy. After the initial PowerBuoy is deployed and tested off the coast of Reedsport, expected later this year, OPT plans to construct the first commercial-scale wave power station in the US, consisting of up to nine additional PowerBuoys and grid connection infrastructure, subject to receipt of all necessary regulatory approvals and additional funding. This wave energy array will be developed by Reedsport OPT Wave Park, LLC.

The four Oregon companies receiving the new contract awards are leaders in their industry. In alphabetical order, they are:

• American Bridge Manufacturing – An advanced construction engineering firm located in the City of Reedsport, American Bridge will manufacture the subsurface floats and tow-out fixtures that are part of the mooring system for the PowerBuoy.
• Cascade General, a subsidiary of Vigor Industrial, LLC – Located at the Portland Shipyard, Cascade provides OPT with access to world-class assets, including large dry docks, cranes, and other major equipment. Cascade General will perform the final assembly of the PowerBuoy and position it in the Columbia River for towing to the coast.
• Oregon Iron Works – Following their successful completion of the previously awarded contract for fabrication of the PowerBuoy’s steel spar, Clackamas-based OIW will perform the insertion and assembly of OPT’s innovative and proprietary power take-off and internal electronics into the PowerBuoy spar.
• Sause Bros., Inc. – Sause Bros. is a marine transportation services firm with a fleet of over sixty tugs and barges, headquartered in Coos Bay, Oregon. Sause Bros. will assist OPT in the deployment of the PowerBuoy, including towing it from the final assembly site in Portland to the Port of Coos Bay, and the positioning and installation of the buoy, mooring lines and anchors at the Reedsport site.

Robert F. Lurie, OPT Vice President for North America Business Development and Marketing, said: “These significant awards to the four Oregon companies is another clear indication that we are delivering on our promise to convert Oregon waves into Oregon jobs. The majority of the content of OPT's PowerBuoys is manufactured and assembled near the coastal sites at which they are deployed. This lays the foundation for a new, environmentally beneficial ocean-related industry to support Oregon’s southern coastal communities and manufacturing firms. This includes the continuing need for local resources to assist in PowerBuoy marine operations.”

Keith Tymchuk, mayor of the Reedsport community that will be the center of the OPT wave power project, stated: “While all four companies are known for their quality and industry leadership, OPT couldn’t have selected two more knowledgeable local businesses than American Bridge and Sause Bros. to complete the successful team. Our community welcomes the jobs that come from the marine services needed to build, deploy and to perform ongoing maintenance on this renewable energy project. The Reedsport OPT wave park will provide a vital economic boost to families that have been hit hard by the recession."
Source: Ocean Power