Of the various forms of ocean energy, tidal energy is poised to mature first because it offers the promise of predictable, lower-cost electricity and a standard design.
"The strong synergies between tidal turbine manufacturing and the hydropower industry have attracted major power sector OEMs," says IHS Senior Renewable Power Analyst Marianne Boust. "Over the past two years, all three of the major hydropower turbine vendors - Andritz Hydro, Alstom Hydro, and Voith Hydro - who account for over 80 percent of the global hydro turbine supply, have jumped into the tidal sector."
Because these large hydro players see tidal energy as a synergistic growth opportunity, they are crucial to catalyzing quick development and commercialization of the tidal industry. They could help the ocean energy industry overcome its technological challenges and drive down costs.
Key companies that are active in scaling Europe's offshore wind industry are also eyeing ocean energy as they scale their renewable portfolios. Iberdrola-ScottishPower, Vattenfall, RWE and SSE all have a strong presence in offshore wind. Each is broadening to include ocean energy. A few have taken equity stakes in ocean technology firms, but most are funding project development through joint ventures.
Ocean Power Technologies Leads
The only pure-play publicly traded company in ocean energy is Ocean Power Technologies (OPTT), which is developing the first commercial scale wave energy system in the US off the coast of Oregon. The 1.5MW wave energy system, which will power about 1000 homes, is expected to be deployed in 2011.
In September, OPTT received $4.8 million in funding from the US Department of Energy, on top of $2 million it received in 2008. They are using the funds to construct the Oregon project and to develop its next generation 500kW system, which will have greater power extraction efficiency. The company is also focused on implementing a "Design-for-Manufacture" approach and reducing maintenance costs, to achieve lower installed capital and energy costs and make wave power more competitive with fossil fuels.
Also in September, OPTT connected a wave energy device to the US grid for the first time at the US Navy's Marine Corps Base in Hawaii. The connection demonstrates the ability of wave systems to produce utility-grade, renewable energy that can be transmitted to the grid.
The Navy has supported Ocean Power's technology development through its $15 million Littoral Expeditionary Autonomous PowerBuoy (LEAP) program. OPTT is providing an autonomous wave energy conversion system for the Navy's near-coast anti-terrorism and maritime surveillance program.
OPTT is also working with Mitsui Engineering & Shipbuilding Co to apply its technology off the coast of Japan. In October 2009, a Japanese consortium signed a MOU to develop wave energy in Japan.
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The IHS study,
Global Ocean Energy Markets and Strategies: 2010-2030, analyzes the various ocean technologies and companies and the potential size and timing for ocean energy scaling.
