Ocean Power Technologies Inc. (NASDAQ: OPTT) successfully deployed the second commercial PowerBuoy some four miles off the New Jersey coast. The company termed the development a milestone, but what follows next and what does the deployments mean to its future?
According to the management of Ocean Power Technologies Inc. (NASDAQ: OPTT), the second deployment of the commercial PB3 PowerBuoy should provide the final validation that the product works well and is ripe for shipping to customers. As such, the management believes that it has got closer to commercialization of the PowerBuoy systems.
OPTT said in a press release that the newly deployed PowerBuoy features significantly improvements over early designs. For example, the latest PowerBuoy boasts a modular energy storage system with a higher capacity than the early prototype. With that, OPTT said that the product renders greater flexibility and efficiency when it comes to power management and distribution.
The new auto-ballasting system in the newly deployed PowerBuoy provides for faster and low-cost deployment.
Ocean Power Technologies Inc (NASDAQ: OPTT) is targeting a variety of markets with its PowerBuoy products that harnesses the energy of ocean waves to generate electricity. For instance, the company has identified oil and gas, ocean observing, communications and security/defense as target markets for its PowerBuoy systems.
Some customers are already asking for the product. A previous customer agreement calls for OPTT to lease its PB3 PowerBuoy for a period of six months and it expects to do the leasing in March 2017 after it collects data from the latest deployment.
What is the business worth?
Ocean Power Technologies Inc. (NASDAQ: OPTT) has not provided estimates of revenue that it expects to generate from the sale of its PowerBuoy systems. But the company is hoping to cash in on the growing demand for renewable energy. The market for alternative energy has been expanded by the Paris climate deal that calls on nations to speed up adaption of green energy to help curb global warming.
If you look at OPTT’s financial statement as of the end of March 31 (1Q2016), you see that the company had only $0.01 million in revenue, $9.4 million of cash and total debt amounting to $0.07 million.