Tuesday, March 01, 2016

Hydrokinetic Threesome

The series on tidal and wave power continues with three more small technology developers.  From an environmental standpoint there is an excellent case to be made for tapping the energy in our planet’s oceans and rivers.  There is no messy, expensive feedstock to buy; no toxic emissions from complex chemical processes.  Even the ancients used river water to drive mill stones.  Today hydroelectric dams capture energy from large flows of pent up river water as it flows through giant turbines.  

Energy from the ocean is also clearly renewable as the persistent rotation of the moon around Earth guarantees the steady ebb and flow of tides.  Unfortunately, ocean forces have not been as easy to harness as river waters.  Tidal and wave power systems have been a far greater challenge than damming rivers.  The possibilities have lured a number of developers to the oceans with various turbine, control and installation machinery, including Oscilla Power, Inc., M3 Wave, LLC and OpenHydro, Inc.

Oscilla Power, Inc. is currently among a group of nine contestants vying for $2 million in Department of Energy money to develop wave power technology.  Oscilla’s wave energy converter technology has put the company in second place in the first round of tests.  The contest entrants are being judged against what is called an ACE test, a cost-benefit-ratio comparing efficiency in extracting energy from waves against the device cost.  The DOE has set a hurdle of 1.5 meters per million dollars of cost.  The contest finals will be staged in a U.S. Navy simulated wave installation later in 2016.

Fourteen patents protect Oscilla’s wave energy converter technology.  Another forty patent applications are pending.  The company is attempting commercialization of its wave energy knowhow in its Triton Wave Energy Converter or Triton WEC.  Each system is expected to deliver 600 kilowatts.  A group of the Triton WECs can be tethered together to the ocean floor to generate grid scale electricity.  The Triton system is uniquely capable of capturing energy from four different wave motions:  heave, pitch, sway and roll.  The low displacement drive train converts mechanical energy into electricity at an average efficiency of 75% or greater.

M3 Wave is also in competition for the DOE’s $2 million prize money.  The company has entirely different approach to capturing energy from waves.  The enclosed system sits on the ocean floor with no moving parts exposed to the corrosive sea water.  Two chambers in the system are filled with air.  As waves pass over the chambers air is forced from one chamber to the other forcing a turbine to spin.  M3 Wave engineers think their unique design will be particularly good for remote location deployment such as military bases or disaster response.

France’s naval shipbuilding, DCNS Group, is the parent of OpenHydro, Inc.  DCNS is leveraging its deep expertise in the marine environment to renewable energy development.  Appropriate, OpenHydro calls its tidal power system the Open Center Turbine.  It is secured to the ocean floor, where the tidal action passes through the turbine openings.  It is a fairly simple design, which OpenHydro believes makes it cost effective to build, install and maintain.  In January 2016, OpenHydro began installation of two of its tidal turbines at Electricite de France’s Paimpol-Brenhat project near Paimpol, France.  Each turbine is rated 2 megawatts.  The project is expected to be connected to EDF’s grid by the summer 2016.

It seems each of these three companies has brought excellent innovation to the world’s energy market.  Only time will tell if these technologies and systems will withstand the harsh ocean environment not to mention the rigorous tests of commercialization.  In the meantime, it is worthwhile for investors to watch how these companies progress.  With success they could either be candidates for initial public offerings or for acquisition by larger, public companies with an interest in capturing a share of the hydrokinetic energy equipment market.



Next and final post in this series is already a public company and offers a pure play in tidal energy.



Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.  OpenHydro, M3 Power and Oscilla Power are included in the Ocean Group of Crystal Equity Research's Electric Earth Index.


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