KP Renewables has been awarded a £5M (US$8.6M) grant from the Welsh European Funding Office for its wave power station off the west Wales coast.
The project is being developed with Wave Dragon to deploy a 7MW unit near Milford Haven.
KP Renewables has already agreed framework power purchase agreements (PPAs), allowing companies to qualify for Renewable Obligation Certificates.
The news follows December’s joint-development agreement between the two for the two stage development, financing, construction and operation of up to 77MW of wave energy projects in Wales.
The first stage will see the 7MW unit installed by spring 2007. If this proves successful, the second stage would feature up to 11 units at a deeper, more energetic site, with a total capacity of 77MW. These units are expected to be deployed during 2008 and 2009.
The Wave Dragon is an offshore floating device that works by channelling waves into a reservoir which is above sea level. The water is then released through a number of turbines. The total cost of the first stage of the development is projected to be £12M (US$20M).
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