OPT: Reedsport project faces delays
By Andy Giegerich
Digital Managing Editor
The delays for OPT's Reedsport project stem from the extra costs and time it will take to adjust to federal government oversight over the buoy's jurisdiction.
The company that’s building a “wave energy park” off the coast of Reedsport acknowledged in its most recent quarterly report that it will miss its goal of deploying its “PowerBuoy” projects this year.
While Ocean Power Technologies Inc. (Nasdaq: OPTT) continues to plan for deployment of the Mark 3 PowerBuoy, the Federal Energy Regulatory Commission claimed jurisdiction over the device in February, company officials revealed in OPT’s third-quarter report.
“If FERC is ultimately determined to have such jurisdiction, significant reporting and other procedures will be necessary to comply with FERC requirements, which will require us to make additional expenditures,” the company wrote. “These factors may delay deployment of the Oregon PowerBuoy beyond calendar 2013.”
Chuck Dunleavy, the Pennington, N.J. company company’s CEO, is traveling and couldn’t be immediately reached for comment.
The company also acknowledged in the report that it had lost another $10.6 million during its fiscal year 2013 third quarter. It also lost $11.1 million a year ago.
OPT’s total assets were $28 million last quarter, compared to $37.4 million at the end of April 2012.
OPT seeks to convert wave power into energy through buoys.
The news of the Reedsport project delays came a few weeks after Dunleavy refuted reports that an expensive anchor float for a buoy was missing off the southern Oregon coast.
OPT also reached an agreement with the state of New Jersey to collect $1.5 million under a complicated program that helps companies with net operating losses raise money. It also launched a new business unit to target and develop opportunities for OPT’s non-grid connected buoys.
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.