GENERATION

BC Hydro Announces Second Ocean Wave Energy Agreement

Ocean Power Delivery was short-listed from 10 international companies that submitted proposals to Hydro for developing the ocean wave demonstration project. Hydro signed a similar MOU with Energetech Australia Pty Ltd in February to demonstrate a different shore-based ocean wave technology on the Island.

"BC Hydro looks forward to working with leading-edge developers like Ocean Power Delivery and Energetech on the Green Energy Demonstration Project's ocean wave component," said BC Hydro's executive vice-president, generation Gary Rodford. "We're excited to be exploring the potential for ocean wave energy in B.C. and to be the first in Canada to undertake demonstrations of this type." Ucluelet has been selected as the initial site for the ocean wave demonstration project. Winter Harbour will also be considered for potential future ocean wave energy projects.

Ocean Power Delivery has developed a floating offshore wave energy converter called the Pelamis, a semi-submerged, articulated machine that has several hinged joints each with a hydraulic pump inside. The relative motion of the sections, due to wave action, activates the pumps, which drive electric generators.

"Ocean Power Delivery is delighted to be selected as BC Hydro's partner in developing offshore wave energy," says Max Carcas, Business Development Director. "Vancouver Island has a huge untapped wave energy resource. Our technology has the potential to exploit this resource to deliver a significant proportion of the island's electricity needs in the future with minimal environmental and visual impact." BC Hydro's decision to develop ocean wave energy on Vancouver Island resulted from its study of potential green energy resources for British Columbia. The first part of the study, completed early in 2001, focused on Vancouver Island and identified strong potential wind, micro hydro and ocean wave resources.

In addition to ocean wave energy, the Vancouver Island Green Energy Demonstration project will bring approximately 10 MW wind and 6 to 8 MW micro hydro energy generation online in 2003/04. Vancouver Island was selected for the demonstration because additional generating capacity is required to meet growing energy demand there. Vancouver Island currently relies on the mainland for 80% of its electricity.

BC Hydro and Ocean Wave Energy
BC Hydro has been studying the potential of a number of near-commercial green energy technologies through its BC Green Energy Study. Phase 1, completed early in 2001, covered Vancouver Island and identified strong potential for electricity generation from a number of green resources, including wind, micro hydro and ocean wave.

The results of this study led to BC Hydro announcing (June 2001) a 20 megawatt (MW) Green Energy Demonstration Project for Vancouver Island. This will include approximately 10 MW of wind, 6 - 8 MW of micro hydro and 3-4 MW of ocean wave energy.

Ocean wave monitoring has now commenced near Ucluelet. While Ucluelet was selected as the initial monitoring site, a second site near Winter Harbour will still be considered for potential future ocean wave energy projects.

Ocean wave energy generation technologies are relatively new to North America. Installations have been built or are under construction in a number of countries, such as Scotland, Portugal, Norway, the U.S.A., China, Australia, Japan and India.

In July 2001, BC Hydro issued an RFP for developers interested in working with BC Hydro to develop the ocean wave energy portion of the Vancouver Island Green Energy Demonstration project. Ten international ocean wave energy developers responded.

Ocean Power Delivery Ltd (OPD), a U.K.-based wave energy developer, and BC Hydro have now signed a memorandum of understanding to develop a joint venture partnership in developing the ocean wave energy project. (BC Hydro signed a similar MOU with a second partner, Energetech Australia Pty Ltd, in February.)

Ocean Power Delivery is currently developing the first full-scale prototype and has a contract to install a pair of 375 kW commercial Pelamis machines off Islay, Scotland.

Information on BC Hydro's Vancouver Island Green Energy Demonstration project can be found at www.bchydro.com/power_future. Information on Ocean Power Delivery Ltd. can be found at http://www.oceanpd.com. ET