Development
Limited
The Markets: Commercial power generation using the Waveberg for hydroelectric plants has the largest long-term potential revenue. Initially the company will build smaller plants to demonstrate the performance and survivability of the system, especially in the European countries with feed-in tariffs. The Wavebergs would be located in 20 – 40 meter depths within a kilometer of the coastline, connected to a subsurface pipe that brings the pressurized water to shore for conversion to electrical power using standard hydroelectric turbines and generators. Eventually one may float the generators on platforms offshore and bring the power ashore through cables.
Initially the company will concentrate on islands and remote locations where conventional power is expensive.
Hawaiian Islands: Maui, Kahoolawe, Lanai, and Molokai (NASA)
HECO, the Hawaii electric utility is seeking bids for 100 MW of non-firm power for Oahu, and Waveberg Development is on the bidders list. The north-eastern edge of Oahu, by Makapuu point, receives a constant swell from the trade winds, but is sheltered from the typhoons by the bulk of the island; this area is outside the many whale sanctuaries in the Hawaiian archipelago. The most recent avoided cost from burning residual fuel oil which HECO published was $0.16 per kWh, when oil had declined to less than $50 per barrel. At that price, 50 MW from 284 90 meter Wavebergs would repay the capital costs within 2.5 years, or if 90% of the capital costs are financed by debt at 11%, the remaining 10% equity financing would be receiving a 300% annual return.
Hawaiian Island wakes (NASA)
Initially the company will concentrate on islands and remote locations where conventional power is expensive.
Bermuda (NASA)
Bermuda, for example, with 62,000 residents and a large tourist population, relies entirely on imported oil for 170 megawatts of power generation. During the recent oil price spike, residents paid $0.37 per kWh, among the highest costs in the West. 1,600 65 meter Wavebergs could supply this power and utilize off-peak power to generate pressurized hydrogen gas for transportation and city gas generation. The array of Wavebergs would take up a strip of ocean on the east coast 34 kilometers long. Delivering power at a price of 15¢ per kilowatt-hour, less than half the current local cost would generate annual revenues of 125 million. The plant would cost about $420 million, for an annual rate of return over the life of the investment of 100%, assuming 80% debt financing at 8%. This return can fuel installations and improvements in other locales. In the case of Bermuda, the local utility has sufficient equity to finance the project and may be the local partner.
The clean energy generated by one Waveberg could reduce green house gas emissions from the burning of fossil fuels by 240 tonnes annually.
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