Ocean Power +41% on Lockheed deal to produce energy from ocean waves

|About: Ocean Power Technologies, Inc. (OPTT)|By:, SA News Editor

Ocean Power Technologies (OPTT +40.9%) soars on news of a $205M deal with Lockheed Martin (LMT +2%) to produce the world’s largest wave energy project off the coast of Victoria, Australia.

Once completed in 2018 or 2019, the project will generate 62.5 MW of peak power, about one-third the capacity of a small coal-fired power plant in the U.S. and enough to meet the needs of 10K homes, LMT says.

The power buoys to be used in the project will rise ~30 ft. out of the water, far smaller than wind turbines which are typically 130 ft. tall and have drawn public resistance.

The agreement is part of a drive by defense giant LMT to expand its foothold in alternative energy as it seeks to offset a slump in U.S. and European military budgets.