This agreement represents a step towards the grant of the first license ever issued by the Federal Energy Regulatory Commission (FERC) for a commercial-scale wave power project in the US, OPT said.

The SA supports the phased development by OPT of a 10-PowerBuoy, 1.5MW capacity wave energy station in a manner that protects ocean resources and stakeholder interests. Manufacturing of the first 150kW PB150 PowerBuoy is already underway at Oregon Iron Works.

The 10-buoy wave farm is expected to be connected to the grid after receipt of the FERC license and additional funding, supplying clean energy to approximately 1,000 homes.

The agreement includes an adaptive management plan that will be used to identify and implement environmental studies that may be required, and to provide a blueprint for the application of this new information as the wave power station develops.

George Taylor, executive chairman of OPT, said: “This agreement demonstrates OPT’s commitment to develop wave power in a way that respects the environment and the needs of all who rely on ocean resources for many different uses.”

Ted Kulongoski, governor of Oregon, said: “When the 10-buoy wave power project is built, a whole new industry will be created to benefit our coastal communities.”