Wave energy technology company Ocean Power Technologies (OPT) and Mitsui Engineering & Shipbuilding have agreed on the terms of licensing and other financial arrangements to cooperate in the development and commercialization of OPT's PowerBuoy technology.
According to the agreement, Mitsui has acquired the licensed right to sell OPT's PowerBuoys for both grid-connected utility and autonomous applications in Japan, the Philippines, Malaysia, Vietnam, Mozambique, South Africa and Namibia.
According to a renewable ten-year term license, Mitsui has the exclusive right to manufacture and sell PowerBuoys in its territory, while OPT will receive royalty payments on sales. Subject to certain exceptions, MES has the first right to refuse manufacturing PowerBuoys sold outside its territory.
Additionally, the companies will agree on terms that will see OPT selling to Mitsui its Power Take-Off systems to be integrated in all PowerBuoys sold by Mitsui, which will receive commission for referring any customers outside its territory to OPT.
The agreement also includes the understanding between the companies for the use of existing intellectual property and any improvements likely to be created by them during the term of the agreement.
The latest agreement builds on the successful work previously done together by the companies to develop PowerBuoy enhancements that, under normal Japanese wave conditions, would provide for improved power capture.
Earlier in October 2012, OPT received a $900,000 contract from Mitsui for further work towards development of the company's PowerBuoy technology for application in Japanese sea conditions.
The PowerBuoy ocean-tested, proprietary system integrates patented technologies in hydrodynamics, electronics, energy conversion and computer control systems to extract the natural energy in ocean waves and turn that energy into reliable and clean electricity, the company claims.
OPT CEO Charles Dunleavy said the agreement marks a significant milestone in the commercialisation of PowerBuoy technology.
"We are very excited to build on the work we have done over the past several years with MES, and we appreciate this recognition of the great business opportunity provided by our PowerBuoys, for both grid-connected and autonomous applications," said Dunleavy.
Image: OPT's PowerBuoy system converts wave energy into clean electricity. Photo: courtesy of Ocean Power Technologies.