Both parties agreed to work with each other to develop projects that generate energy from waves, tides, ocean currents and flow of rivers.

Commenting on the alliance FERC chairman Jon Wellinghof termed Hydrokinetics to be an emerging resource.

"Hydrokinetic development is an up and coming resource and this MOU provides valuable coordination between FERC and the Coast Guard to ensure an efficient process while protecting valuable environmental resources," said Wellinghof.

As per the agreed terms, both agencies will establish a joint timetable, identify critical issues early, acquire and share information efficiently and collaborate on analysis.

The MOU will also advance interagency cooperation in protecting navigation safety, maritime security, and environmental resources when considering license proposals for hydrokinetic energy development.