Boston, MA 02/11/2014 (wallstreetpr) – Ocean Power Technologies Inc (NASDAQ:OPTT) has signed an agreement with the top U.S. arms company Lockheed Martin Corporation (NYSE:LMT) towards the harnessing of ocean waves to generate electricity. The project will be located off Victoria coast, Australia.
About 205.68 million will be spent in the project which will easily become the largest wave energy harnessing undertaking. OPTT will design the buoys that are used to tap electricity from the surface motion of ocean waves.
The expected capacity of the Vitoria project is 62.5 MW, an amount of electricity that is enough to power more than 10,000 homes. However, that capacity is reportedly about one-third of electricity output of small coal plant in the U.S. Lockheed has announced that the Victoria ocean wave electricity project will come online around 2018 – 2019.
In moving to sign with Ocean Power Technologies Inc (NASDAQ:OPTT) for the harnessing of ocean surface motion waves in electricity production, Lockheed has noticed the tremendous opportunities in alternative energy from oceans and the fact that such energy source remains largely untapped around the world.
The best thing about ocean energy is that you can get it on coastlines all around the world and that it is clean besides being free in terms of fuel usage.
Offsetting decline in arms revenue
Lockheed is best known for its big position in arms making. However, reduced military spending in U.S. Britain and many others of its client countries has impacted its revenue and profits. Thus, Lockheed is turning to production of energy that it can sell to boost its top and bottom lines.
Expanding foothold in alternative power business is the new game that Lockheed wants to play now that coastal warships and F-35 fighter jets that are core to its main business are not winning good business anymore.
More power investment
Before announcing the latest agreement with Ocean Power Technologies Inc (NASDAQ:OPTT) for the harnessing of electricity off the Victoria coastline, Lockheed had announced a deal with Reignwood Group, a Chinese consumer company, to design a mega power station run by changing ocean temperatures.
Lockheed is becoming sort of obsessed with ocean energy production because of among other things, limitless opportunities available and the predictability of the energy compared to solar and wind.
Ocean Power Technologies Inc (NASDAQ:OPTT) and Lockheed will not be coming to know each other for the first time because of the Victoria ocean wave energy project. The companies have worked together on several, though smaller projects since 2014. Some of those projects have been to serve the U.S. Department of Energy.