Feb. 6 (Bloomberg) — Oceanlinx Ltd., an Australian
manufacturer of wave-power generators, plans to raise A$20
million ($20.6 million) to expand in Europe and the U.S. before
holding a possible share sale.
The company intends to raise the funds from corporate
equity in the first half, preparing it for a “liquidity event”
within two years, Chief Executive Officer Ali Baghaei said in an
interview in London.
The manufacturer, based in Sydney, is vying with
competitors Pelamis Wave Power Ltd. and Aquamarine Power Ltd. to
bring wave-power technology to market. Companies that generate
electricity from waves, at a cost almost four times that of
coal-fired power, require funding to expand projects that
haven’t yet been proven on a commercial scale.
Oceanlinx is targeting growth in Northern Ireland, where
Minesto AB won a permit to test a tidal-power machine in
November, and OpenHydro, Irish utility Bord Gais and DP Marine
Energy Ltd. also plan similar projects.
“I have started discussions with the government in
Northern Ireland and I intend to open an office in Belfast and
appoint some local professionals,” Baghaei said. The region is
promoting renewable energy as it seeks to raise the share of
clean-power use to 40 percent by 2020 from about 14 percent now.
U.S. Growth
“Another part of the money will be used for similar types
of activity in the U.S. where we have offices that we need to
man,” Baghaei said. Oceanlinx has been in talks with a power
utility in Hawaii for more than five years, he said, without
naming the company.
Oceanlinx already said a year ago it was studying an
initial share sale. It’s testing a 1-megawatt machine at Port
Macdonnell in South Australia and also plans projects in
Scotland, Portugal, California, China and Japan.
The company’s cost to produce power will be competitive
with onshore wind within three years, and will rival fossil
fuels in five years, Baghaei said. Wave energy currently costs
about $496 a megawatt-hour, according to Bloomberg estimates.
That compares with $127.70 for coal-fired power.
Pelamis and Aquamarine Power have also said they’re looking
for strategic investors and partnerships to help steer their
technology to market. Irish turbine maker OpenHydro won
investment of as much as 130 million euros ($176 million) from
France’s DCNS SA last month, while Siemens AG completed its
acquisition of Marine Current Turbines Ltd. last year.
To contact the reporter on this story:
Louise Downing in London at
ldowning4@bloomberg.net
To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net
