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The PowerBuoy, which is on an 18-month lease to Eni, will be used to demonstrate subsea battery charging.
Ocean Power Technologies (NASDAQ:OPTT) announced on Monday (August 20) that it has shipped its PB3 PowerBuoy to Eni (BIT:ENI) for deployment and use in the Adriatic Sea.
The PowerBuoy, which is on an 18-month lease, will be used to demonstrate subsea battery charging. It is intended for standalone charging and communication for long-term remote operation of autonomous underwater vehicles (AUVs).
Further, Ocean Power said that apart from supplying the PowerBuoy, it will assist Eni in deployment, remote data collection and monitoring.
“We believe the shipment to Eni creates opportunities for additional applications related to subsea charging for applications such as underwater unmanned vehicles, well monitoring and decommissioning in the oil and gas industry,” George H. Kirby, CEO of Ocean Power, said in a release.
The two companies initially signed a 24-month agreement in March and have since achieved several breakthroughs, including payload integration and testing of buoy systems.
“The technology being developed could allow Eni to use clean energy to demonstrate the power and communications capabilities of a combined PB3-subsea battery charging system in a harsh offshore environment, for AUV and other applications,” Kirby said in the March release.
Monday’s announcement notes that upon the completion of the 18-month lease, Eni can either extend it or purchase the PowerBuoy.
Ocean Power said in its investor day presentation that the oil and gas industry has an addressable market of US$2.4 billion.
The company claims that the PowerBuoy will create a significant cost-saving opportunity. According to Ocean Power, over 10,000 sites require power; it is targeting 10 to 20 percent of the market in the medium term.
In June, the company signed a contract with Premier Oil for PowerBuoy deployment in the Central North Sea. In July, Ocean Power revealed that the combined contract value of its Eni and Premier Oil deals is over US$3.1 million.
Following Monday’s announcement, shares of Ocean Power were down 2.8 percent to close the trading session at US$0.73. The company has a “sell” ranking on TradingView with nine verticals against, 10 in neutral and seven in favor.
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Securities Disclosure: I, Bala Yogesh hold no direct investment interest in any company mentioned in this article.
