Ocean Power Technologies (OPTT) announced this morning that it has completed its next generation wave energy device, the PowerBuoy 150.  The buoy with peak power output of 150kW (enough to power 150 homes), was built in Scotland and is currently being prepared for ocean trials off the coast of Invergordon.  A 2nd PowerBuoy is being built in Reedsport, Oregon and the company is pursuing financing for commercial utilization once the trials are complete.

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Charles F. Dunleavy, Chief Executive Officer of OPT, said: “The completion of the first PB150 in the UK is a major engineering achievement for OPT and also begins an important new chapter in the Company’s commercialization strategy. The PB150 structure and mooring system has already received independent certification from Lloyd’s Register, as announced last month. The new device is intended to become OPT’s first “workhorse” for utility-scale projects, and embodies the Company’s strong track record in innovation and in-ocean development of wave power systems as a source of clean, renewable energy. With construction of the second PB150 well underway in Oregon, USA, we are very proud of reaching this milestone and look to the future of utility-scale wave energy with increasing confidence.”

Shares are up modestly today and continue to hold around key support in the $4.75 – $5.00 range.  Perhaps it’s a compelling entry down here, but this is still a development stage company with no profit so carries considerably more risk.  However, It is really the best way to play wave energy in the US market and to my knowledge (unless there is a pink sheet available) the only way. 

The LA Times highlighted Ocean Power Technologies (OPTT) at its Environmental blog today.  The company aims to be the first in the US to provide wave energy on a commercial scale.  Last month they reached a milestone by providing power with a test buoy to a US Marine base in Hawaii.  The next step is to connect a larger buoy to the grid in Reedsport, Oregon and ultimately build a wave energy farm off the coast there to power up to 50K homes.

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24/7 Wall St published their list of the 25 most important alternative energy companies a few days ago and broke it down by category.  I thought I’d highlight the companies they consider to be the most important in each category (which I agree with) and add in some of my own thoughts.  There is one glaring omission in 24/7 Wall St’s report and that is geothermal.  Geothermal remains the red headed step child of the alternative energy industry!  I have added in my top pick in geothermal which is the 800lb gorilla in the space, Ormat Technologies (ORA).  I’ve also included a wave energy section which includes the only way to play it on a major US exchange.

SOLAR

First Solar (FSLR) is the top pick in the solar space due to its industry leading cost structure of just .76/watt.  The thin film solar leader still provides advantages over traditional silicon solar companies although the cost advantages have diminished in recent years due to plummeting poly prices.  They remain the top US solar company, still have a solid European customer base and are attempting to make big inroads in China (although that strategy has been criticized and delays are expected).

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THERMAL SOLAR

Thermal solar, often called concentrated solar power, is a technology that is in its infancy but a technology that’s expected to be used at an exponential rate over the next ten years.  Rather than using solar cells, mirrors are used to reflect light used to heat water which creates steam to drive a turbine.  This lower tech solution is much less costly than a tradition solar cell plant.

Solar Millennium (OTC:SMLNF) is a German-based company that trades over the counter here in the US, but is highly illiquid so I can’t recommend it.  If you can find a way to trade it on the German market that’s probably a better option.  What’s exciting about this solar thermal player is that the California Public Utilities Commission recently approved its plan (partnering with Chevron) to begin construction on the first two thermal solar plants which are expected to produce electricity by 2013.  If the entire project (four plants total) get approved, it would represent the largest solar project in the world and generate 1GW of energy (which is roughly enough energy to power a city about the size of Seattle).

WIND ENERGY

General Electric (GE) is the top pick in the wind energy industry, but it should be noted the company is attempting a big push into the smart grid, solar and LED space as well. While this isn’t an alternative energy pure play for investors, it is a very important company in the US alternative energy market and it has a big presence globally.  They are attempting to transform the company and an increasingly larger portion of revenues comes from energy infrastructure with its wind turbine business (although it has stalled out recently)  As 24/7 Wall St points out, energy infrastructure accounted for 18% of revenue in 2007, 21% in 2008 and 24% last year.  The company recently announced an important relationship with Harbin Electric to try to capture a big piece of the China wind market which is expected to explode in the coming years and likely offer bigger growth than the US market.

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WIND & SOLAR FARM CONSTRUCTION

ABB Ltd. (ABB) is the Swiss manufacturing behemoth that does over $30 billion a year in revenue and part of its business is the design and construction of solar and wind farms.  It also will likely be a huge player in the modernization of the grid, so ABB while not an alternative energy pure play, is on par with a GE in terms of its importance to the alternative energy revolution.

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BIOFUELS

Cosan Ltd.(CZZ) is Brazil’s largest producer of sugar cane-derived ethanol and recently announced a $12 billion joint venture with Royal Dutch Shell.

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Honorable Mention: In my opinion, the steady profitability and bullish earnings report out of Green Plains Renewable Energy (GPRE) last night makes it my pick for the top US based ethanol producer.

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MINING

Sociedad Química y Minera (SQM) is the largest lithium miner in Chile and it’s been said that Chile is home to 75% of the world’s lithium supply.  Lithium battery demand will continue to surge.  You do the math.

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LITHIUM BATTERIES

Advanced Battery Technologies (ABAT) 24/7 Wall St nails this one.  ABAT is a lithium battery company in China that gets little respect here in the States.  Most traders are interested in unprofitable US based battery plays with potential such as A123 Systems (AONE) and Ener1 (HEV), but ABAT sets itself apart in one key area.  It is profitable and growing quickly.  It remains my top battery play as well.  As 24/7 notes, none of the revenues came from vehicle batteries in 2008 as the company focused on batteries in consumer products, but last year the company accumulated $21 million in revenue from batteries for buses.  Not to be overlooked is the potential of the electric bike business in China which is becoming a revenue driver for the company.  In fact, in their last earnings report, they highlighted that half of their revenues now come from electric bikes.

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SMART GRID

Itron (ITRI) has the potential for enormous growth as the smartening of the grid gets underway.  Highlighted by 24/7 is the estimate by ITRI that there are 1.3 billion electricity meters installed globally and less than 10% are automated.  Of the 175 million meters installed in the US about half use automated technology and the company claims its technology is in about half of those.  Hmm.. those stats really surprise me if accurate.  I would have thought there were far more than 175 million meters in the US and far less than half being automated.  I suppose the important take away is that there is big growth potential outside the US.  They also provide automated meter reading for gas and water meters and just announced a partnership this morning with Sierra Wireless to provide data over existing cellular networks greatly increasing efficiency of installation and collection of data.

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LED LIGHTING

Cree Inc. (CREE) The LED space may be one of the most exciting places to invest for alternative energy investors in the coming decade for a few reasons.  LED lights are exponentially more efficient and will last about 20 years, the US is phasing out the traditional light bulb beginning in 2012 and costs are continuing to drop.  Granted, many will move to compact fluorescent lighting which doesn’t quite offer the the same efficiency or life span of an LED bulb, but comes at a much cheaper price.  Expect LED to become a more viable option to the average home when the price for an LED is cut in half which is probably a few years away.

CREE is often thought of as the top LED pure play and for good reason.  The company’s growth has exploded in the past couple years.  However, the company will battle some big competition as the industry matures from both General Electric and Phillips.  General Electric is expected to release its first household LED bulb next month.

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GEOTHERMAL

Ormat Technologies (ORA) is the 800lb gorilla in the geothermal industry and the largest pure play.  Chevron is actually the largest producer of geothermal energy in the world and provides about 13% of the total capacity according to Wikinvest.  Geothermal doesn’t get the attention that wind and solar get, but it’s going to be an important generator of near continuous alternative energy and Ormat is the safest way to play it. 

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WAVE ENERGY

In their report, 24/7 Wall St didn’t include wave energy either probably because the technology is still a ways off, but I think it’s worth mentioning Ocean Power Technologies (OPTT) which is developing the first commercial scale wave energy system in the US off the coast of Oregon.  Obviously the technology presents unique challenges and it will probably never make up a significant portion of our energy needs, but together with other technologies could provide another source of clean, renewable energy.  OPTT is the only wave energy stock currently traded on a major US exchange.

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The US Navy continues to invest in the wave energy technologies of Ocean Power Technologies (OPTT) as part of their anti-terrorism and maritime surveillance program.  The new award follows the successful completion of the first stage of a four-year $15.0 million project for the US Navy’s Littoral Expeditionary Autonomous PowerBuoy (LEAP) program during which OPT successfully completed delivery of the design and testing of a new power take-off system for its PowerBuoy wave energy system.  The LEAP program aims to enhance security in our oceans with a vessel detection system running on wave energy.

CEO of OPTT Charles Dunleavy commented: “OPT is delighted to receive this new funding from the US Navy. We appreciate the confidence that the Navy has shown in OPT and our autonomous PowerBuoy, which is based on a long-standing and productive partnership.”

Shares of OPTT are trading down a few percent today but continue to look like they may have bottomed out around the $4.80 level.  While the company is a long ways from being profitable, it may be a compelling entry down at these levels.

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A big wave energy milestone has  been reached here in the US.  Ocean Power Technologies(OPTT) has for the first time in US history successfully completed the connection of a wave energy device to the energy grid.  The PowerBuoy was connected to the grid with the help of the US Navy at a Marine base in Hawaii.

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Charles F. Dunleavy, Chief Executive Officer of OPT, said, “OPT has been ocean-testing its technology in the Atlantic and Pacific Oceans for several years. Our engineers and marine operations personnel have worked hard to bring about this success. Grid connection is another significant milestone in demonstrating the potential for commercial status of our PowerBuoy technology. We thank the Navy and the Naval Facilities group for supporting this project as we move nearer to achieving their goals for the program. We are pleased to be a part of the renewable energy initiatives undertaken by the commander of Marine Corps Base Hawaii.”

Shares of OPTT are trading higher about 3% in pre-market trading and continue to look increasingly bullish in recent weeks.  It kicked off support of the 50 day moving average on Friday and may be poised for another leg higher.

Ocean Power Technologies (OPTT) announced today two additional grants from the DOE totaling $4.8 million to help to continue to advance its research into wave energy systems and put the finishing pieces in place for the country’s first commercial wave energy plant in Reedsport, Oregon.

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CEO Charles F. Dunleavy commented: “These awards are another significant step in a global drive to make wave power a commercial reality. OPT’s programs of work under these awards are in accord with the Department of Energy’s objectives to help develop innovative technologies that contribute to the clean energy economy. The funds will help OPT to accelerate the commercialization of our PB150 wave power stations in the US and facilitate the development of our 500 kilowatt-rated PowerBuoy technology. We appreciate the DoE’s continued support of OPT’s programs to harness wave power as a major source of renewable energy.”

Shares of OPTT aren’t moving on the news today and down about 1%, but it appears ithey may be ready to turn the corner after a steep decline in 2010.  The stock made a strong move with good volume Friday, getting back above the 50 day moving average.

Ocean Power Technologies (OPTT) moved another step closer to realizing its goal of completing the first commercial scale wave power station in the US.  The company has signed a Settlement Agreement with 11 federal and state agencies for its Reedsport, Oregon wave energy project which covers everything from aquatic resources, water quality, recreation, public safety, crabbing and fishing and cultural resources.

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The next step for Ocean Power is a license issued by the Federal Energy Regulatory Commission for a 10 Powerbuoy, 1.5MW wave energy system that could potentially power up to 1000 homes.  Manufacturing is already underway on the first 150kW PB150 Powerbuoy in Oregon at Iron Works which has contracted to build the Powerbuoys.  In addition to the federal license, the company will likely need additional funding as well.  No word on when a federal license could be granted, but I’d imagine the stock would pop on that news.  The stock isn’t moving as I write this.

Ocean Power Technologies just announced that it has been granted GBP 1.5 million by the South West of England Regional Development Agency to develop a new, improved 500 KW PowerBuoy.

Ocean Power Technologies will collaborate with A&P Falmouth and the Peninsula Research Institute for Marine Renewable Energy on the new PowerBuoy design, increasing output from 150kw to 500kw and making other improvements.

In a press release, Angus Norman, Chief Executive Ocean Power Technologies, Ltd., commented on the award:

“This award is a mark of the commitment and strong relationships among OPT, its partners and SWRDA to establish the South West of England as one of the world’s leading centers for marine energy with the Wave Hub as its focal point. It will enable OPT to accelerate the development of its next generation PowerBuoy, which we believe will be competitive in large production volumes with fossil fuel-based energy. It also will help to boost Britain’s renewable sector in the long term.”

Ocean Power Technologies (OPTT) has won a $1.5 million grant from the DOE to help develop the next generation PowerBuoy wave energy system, capable of producing more than triple the power of the current PowerBuoy system and with a much lower installation cost.  The company received its first DOE grant in 2008 to help with the project in Reedsport, Oregon.

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CEO Charles Dunleavy commented: “OPT’s program of work under this award is in accord with the Department of Energy’s objectives to increase the use of domestic marine resources for electric power generation and to enhance energy security, while improving the environment. OPT and its partners share these goals and are committed to dealing constructively with the challenges of climate change. We appreciate the DoE’s confidence in our technical capabilities to commercialize wave power further.”

Technically, OPTT still looks quite bullish on the daily chart and continues to hold above the 200 day moving average.  A breakout above 7.69 would be very bullish.  Shares aren’t moving much on the news today, up fractionally.

Ocean Power Technologies (OPTT) received a EUR2.2 million grant from the European Commission to deploy a PowerBuoy wave energy device as part of the WavePort project in Spain.  OPTT will be responsibly for the PowerBuoy as well as the underwater pod and will be working closely with the Wave Energy Centre (Portugal), Fugro Oceanor (Norway), DeGima (Spain) and the University of Exeter (UK).

OPTT’s proprietary technologies allow for wave by wave tuning to optimize efficiency.  The U of Exeter will help out in wave prediction analysis while Fugro will provide wave monitoring equipment to collect and transmit data to further enhance efficiency. 

OPTT CEO Charles Dunleavy commented:  “This award by the European Commission is a springboard for OPT to further develop our Spanish project and to demonstrate the commercial performance of the PowerBuoy’s proprietary and innovative tuning system. We would like to thank the Commission for this award and we look forward to working with our Consortium partners and the EC to deliver this exciting new PowerBuoy project.”

Shares of OPTT were up a few percent today and holding in around support of the 200 day moving average.

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