In late 2009, Energy Minister Martin Ferguson shocked analysts by awarding a $66 million grant to a little-known wave power project off the south-west coast of Victoria.
The US-based Ocean Power Technologies - touting a relationship with Leighton Holdings - beat their more fancied wave-power competitors to the money with a proposal to build a 19-megawatt development near Portland.
Two years on and there is no physical evidence of the project in Victorian waters, leaving clean energy proponents, including defeated rivals, wondering whether it has been a gamble that will not pay off.
In an interview with The Saturday Age, Ocean Power’s directors say that despite the naysayers they have made quiet progress. And early next year they want to begin laying cables and putting the first of their ”power buoy” generation units into the ocean, ready to produce renewable energy.
The director of Ocean Power’s Australian arm, Gilbert George, said initial delays occurred during lengthy discussion over the conditions and the contract for the grant.
”It is new technology and the federal government, I think quite rightly, wanted to be conservative, it’s taxpayers’ money,” Mr George said.
He said the government also set a major condition for the grant: a demonstration of the latest power buoy design. The company met this requirement in Scotland last year.
Australian-born George Taylor - Ocean Power’s founder and executive chairman - said that since winning the grant a technical report had also been ticked off federally on the potential energy per wave at the Portland site.
Ocean Power recently hired Keith Bowyer as managing director of the Portland project. They are preparing to seek environmental permits and have been meeting potential investors.
Dr Taylor said the company had spent time honing its technology, with systems in the water going back to 1997. He also pointed to grants Ocean Power had received from the US departments of Energy and Defence to help develop projects in Hawaii and Oregon.
In the past, questions have dogged Ocean Power about its performance. In 2008, its then British house broker Collins Stewart complained in The Times of London of the company ”displaying a total inability to deliver”.
Despite the federal commitment, Ocean Power has failed to attract financial support from the state government, which recently gave $5 million to competitor BioPower Systems for a 250-kilowatt demonstration project in Port Fairy.
For years there have been hopes that Australia might tap into its huge wave power resources. In 2010, CSIRO estimated the wave energy along the south coast of Australia was five times greater than our current electricity needs.
Ali Baghaei, chief executive of another wave firm, Oceanlinx, said governments should spread the ”risk” of wave power development by supporting a number of projects. Wave projects could secure some government funds out of a $126 million emerging renewable energy program, with grants rumoured to be announced in coming months.
In Portland, Ocean Power still faces a number of tests. Biggest of all is attracting private investors - they need an extra $130 million - in tough economic conditions. It hopes to do this and have power purchase agreements and other permits in place by the end of the year.
Once the first stage of the project - generating 1.5 megawatts of electricity via 10 ”PB150” power buoys - is finished, the second and third stages get under way using larger, but yet to be developed, ”PB500” power buoys. Mr George said the aim was to complete the entire project by 2016.
Dr Taylor said the time is right for the Australian project.
”We see this as a great opportunity to prove a large demonstration program which will really satisfy the naysayers that this [wave power] is indeed a true competitor,” he said.
