Wave energy developer Ocean Power Technologies, Inc. and Mitsui Engineering & Shipbuilding Co., Ltd. have signed an agreement in the development and commercialization of OPT's "PowerBuoy" generating technology.
The agreement builds on previous collaborations, including one announced in November 2010 and a second in October 2012.
The newest document establishes terms of technology licensing and other financial arrangements between the parties with regard to OPT's PowerBuoy system.
Per its terms, Mistui has the licensed rights to OPT's PowerBuoys for both grid-connected and autonomous applications in Japan, the Philippines, Malaysia, Vietnam, Mozambique, South Africa and Nambia.
The license also provides for a 10-year term under which Mitsui has the exclusive rights to manufacture and sell PowerBuoys in its territory, in exchange for OPT royalty payments.
"This agreement between OPT and MES marks a significant milestone in the commercialization of our technology," Ocean Power Technologies CEO Charles F. Dunleavy said. "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."
OPT will also sell MES all "Power Take-Off" systems to be integrated into the units sold by Mitsui.
The agreement also stipulates that MES receives commission payments for customers referred to OPT from outside its territory, with MES holding the first right of refusal to manufacture equipment for those customers.
"We are pleased to enter into this important agreement with OPT to develop new business opportunities for the PowerBuoy technology," MES Deputy Director of Business Development and Innovation Hirotaka Ohashi said. "MES looks forward to continuing to work with OPT, and we believe that wave energy is important to our vision of reducing dependence on fossil fuels."
HydroWorld.com reported earlier this week that New Jersey-based OPT had elected David L. Keller to its board of directors.
The company was also one of a number of companies receiving funding from the U.S. Department of Energy as part of its marine and hydrokinetic development program.
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