A letter of intent has been signed this morning between Lockheed Martin (LMT) and wave energy startup Ocean Power Technologies (OPTT) to collaborate in the development of utility scale wave energy in North America.  OPTT would provide site development and its PowerBuoy technology while Lockheed Martin would provide construction, systems integration, operation and maintenance services.  The two companies have worked together before on maritime surveillance for the Dept of Homeland Security but this marks  the first agreement to work together for the advancement of utility scale wave energy.  This is big news for the wave energy industry.

Dr. George W. Taylor, CEO of OPTT, said “We are pleased to announce these plans to work with Lockheed Martin to pursue a utility-scale power station using our PowerBuoy technology. This collaboration will serve to draw on the key strengths of each company, and leverage our respective commitments to renewable energy as both the U.S. federal and state governments increase their investment in the sector. We believe that our existing and prospective customers will highly value the combined innovation and execution capability this match brings to the marketplace.”

OPTT is surging 13% today with good volume and clearing the 200 day moving average but remains in a long one year downtrend.