Protean Wave Energy Ltd (ASX:POW) has completed preparations for the imminent deployment of the first Protean Wave Energy Converter (NYSE:WEC) buoy at the Port of Bunbury, Western Australia.
The multi‐buoy demonstration wave farm is a key step in the commercialisation of the Protean technology.
It will be deployed progressively with stage 1 consisting of 3 Protean WEC buoys.
The wave farm will be in operation for a maximum period ending 30 September 2016
The company will collect performance and environmental data in lead up to a pre-feasibility study (NYSE:PFS).
The PFS will target deployment of the company's first commercial pilot wave farm.
Evaluation of stage 1 will inform the decision regarding whether a second stage is required for PFS inputs.
The Protean™ Wave Technology design has been over 10 years in development and comprises a small, durable ocean buoy that is tethered to a weight on the ocean floor.
Protean's initial market focus is the 60 small island nations in the world that mostly still use high cost and high carbon emitting diesel generators for power.
The commercialisation of the Protean™ WEC technology for small island nations could begin with Hanimaadhoo Island in the Maldives, where the company already has an agreement in place which supports deployment of a commercial pilot wave farm.
Protean listed on the ASX at the end of February, 2016 by way of a reverse takeover of Stonehenge Metals.
At the end of the March quarter the company had $2.1 million cash in the bank.
Port of Bunbury
Port of Bunbury is located 182 kilometres south of Perth and is surrounded by some of the world's richest areas of wave energy.
The port is strategically located to be a natural distribution point which embraces mining, manufacturing, agricultural and pastoral areas.
The testing is a key step as electricity in the Greater Bunbury sub-region is mainly from coal-fired stations at Muja and Collie. The multi‐buoy demonstration wave farm will be in operation until ending 30 September 2016.
The performance and environmental data will herald a period of news flow and price catalysts in 2016.
A successful testing will move Protean further along the path to commercialisation. With a current market cap. of circa $16 million, POW provides an upside case versus a peer ASX listed company with a $78 million market cap.
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