The two companies will work together to develop a new mooring system for OPT's PowerBuoy wave power device, customised for wave power stations off the coast of Japan.

The wave power system will undergo testing at MES's wave tank facilities to verify the results of extensive computer modelling. OPT expects to receive YEN18 million (~US$220,000) for its development efforts.

Work under the agreement is expected to be performed over the next 6 months.

Charles F. Dunleavy, CEO at OPT, says: "This new agreement is consistent with OPT's global strategy to form alliances with strategic partners in key markets. We believe working with MES will facilitate the realisation of the great potential of wave power as a concentrated and predictable source of renewable energy for Japan."

The Japanese government has pledged to target a 25% cut in greenhouse gas emissions from 1990 levels by 2020 as part of its intentions to boost renewable energy sources to about 10% of primary energy supply by 2020. The Japanese government has specifically targeted wave energy as a component of this strategy.

Mr. Ryoichi Jinkawa, Managing Director of the Business Development and Innovation Headquarters of MES, adds: "We continue to be impressed with OPT's technical strength and in-ocean experience. MES is very excited by the great business opportunity resulting from our relationship with OPT. We look forward to continuing to work with OPT in making our common vision of increasing the use of renewable energy a reality."