Oregon wave energy project surrenders license

Ocean waves contain tremendous amounts of energy that could be harnessed by humans -- but difficulties have led a pilot project proposed off the Oregon coast to surrender a key federal license.

Calm waters along the shore of Penobscot Bay, Maine.

Ocean Power Technologies subsidiary Reedsport OPT Wave Park, LLC had proposed a wave energy project in the Pacific Ocean off the central Oregon coast.  In 2012, the Federal Energy Regulatory Commission issued a license for the project.  That license authorized the developer to install a single "PowerBuoy" wave energy converter for testing, followed by additional grid-connected buoys.  The developer also envisioned a third phase that could bring the project's capacity to 50 megawatts, and secured a preliminary permit from the Commission to study the site.

Despite securing these key regulatory approvals, the Reedsport project quickly ran into technical difficulties.  Reedsport began construction of the project in September 2012, by installing a single floating gravity based anchor and auxiliary subsurface buoy.  However, this first phase of the project was unsuccessful and the auxiliary buoy sank.  Reedsport removed the buoy and associated tendon and outer mooring lines from the project area on October 17, 2013.  On February 28, 2014, Ocean Power Technologies notified the Federal Energy Regulatory Commission that it intended to surrender its preliminary permit for the 50 megawatt third phase, but left the first phase's license in place for the moment.

On May 30, 2014, Reedsport filed an application to surrender its license for project, stating that financial and regulatory challenges in developing the project have forced it to conclude that it cannot proceed with the development of the project.  The Commission accepted that license surrender by order dated August 14, to be effective following confirmation of the project's decommissioning.

With the Reedsport project shelved, no wave energy project currently holds a FERC license.  Several tidal projects have been licensed, one wave-based hydrokinetic project has secured a preliminary permit, and two other wave energy projects have pending applications for preliminary permits.  The ocean remains a demanding environment, and the economics of most wave energy projects are challenging.  Will others succeed where Reedsport OPT has not?

Oregon wave project permit surrendered

The developer of a proposed large wave energy project off the Oregon coast has surrendered a key federal permit for the project.

Waves lap islands off the Maine coast near Casco Bay, a more sheltered site than that proposed off Oregon.

Ocean Power Technologies subsidiary Reedsport OPT Wave Park, LLC had proposed a 50 megawatt project in the Pacific Ocean off the central Oregon coast.  This larger project was intended to follow on the heels of OPT's "Phase I" development, a 1.5 megawatt non-grid connected pilot project which in 2012 became the first U.S. wave project to win a license from the Federal Energy Regulatory Commission.

OPT also won preliminary permits from the FERC to study the feasibility of larger projects off Reedsport, including a 15 megawatt "Phase II" and the 50 megawatt "Phase III" project.  OPT's Phase III preliminary permit gave it three years to study the feasibility of the "Reedsport Expanded Project", after which OPT could seek a license to develop and operate the larger scale phases.

That permit was set to expire on February 28, 2014.  Given the technological, permitting, and community engagement challenges raised by developing any advanced energy project, many permittees find that they need more than 3 years to study a site.  The FERC allows such developers to seek successive preliminary permits, effectively extending the due diligence period for qualified developers able to show real progress.

But based on a February 28, 2014, FERC filing, OPT announced that it would not seek a successive preliminary permit at this time, and would instead surrender the Phase III preliminary permit.  In its filing, OPT acknowledged the significant efforts made by the state of Oregon to facilitate wave energy projects, but noted the challenges interposed by a cascading series of unforeseen delays:delays in the Phase I study and development processes, resulting delays in the Phase II consultation, licensing, study, and monitoring processes, and "increased project-related costs."  Ultimately, OPT noted that while it continues to evaluate its Phase I and Phase II implementation options, "OPT's plans for an expanded Phase III Project are sufficiently uncertain at this time that the company cannot justify requesting an additional three-year preliminary permit extension."

Meanwhile, last month another OPT affiliate announced an agreement with Lockheed Martin to develop a 62.5 megawatt wave energy project off the coast of Australia.  While it is tempting to read between the lines and surmise that the Australian permitting process, culture, or site conditions are more favorable than those in Oregon, OPT has given no concrete indication that this is the case.  Estimates of U.S. wave energy potential remain large -- with at least one report identifying a total available wave energy resource of 2,650 terawatt-hours per year.  Whether or not the expanded Oregon project returns to active development, the size of the resource points to continued interest in developing the U.S.'s marine renewable energy resources.

FERC issues wave energy license

Federal energy regulators have issued a license to a wave energy project off the Oregon coast.  If built as proposed, the project could be the first grid-tied commercial-scale wave energy project in U.S. waters.

A sailboat cruises past the Bear Island Lighthouse near Northeast Harbor, Maine.

Last week the Federal Energy Regulatory Commission issued a license (76-page PDF) to Reedsport OPT Wave Park, LLC for the ocean energy project.  In its license application filed in January 2010, the Ocean Power Technologies, Inc. subsidiary proposed a buoy-based wave energy conversion project to be located about 2.5 nautical miles off the coast of Reedsport, in Douglas County, Oregon.  Water depths in the project area range from about 204 to 225 feet.

According to the FERC order issuing the project's license, the project will generate electricity from using ten PowerBuoy wave energy converters anchored to the seafloor.  Each buoy will have a 150 kilowatt nameplate capacity; physically, each buoy has a maximum diameter of 36 feet, extends 29.5 feet above water, and has a draft of 115 feet.
 
The marine renewable energy project will be built in two phases.  In the first phase, a single PowerBuoy will be installed; this will enable the developer to test the mooring system and buoy operation, as well as to study the electromagnetic fields and acoustic emissions produced by the project.  This single buoy will not be connected to the grid.  After at least one season of monitoring this single buoy, the developer will add up to nine additional PowerBuoys and connect the array to the mainland grid. The ten buoy units will be deployed in an array of three rows about 330 feet apart, with a footprint of about 30 acres.

The developer reportedly expects to install the first buoy by the end of 2012, with the remaining generators to be installed by 2015.  FERC's license for the project has a term of 35 years.

June 28, 2011 - pending applications for hydrokinetic licenses

To wrap up our look at how hydrokinetic power projects are licensed, today I'll consider the currently pending applications for hydrokinetic project licenses.

Hydrokinetic power production entails the production of electricity from the energy of moving water: waves, tides, currents, or river flows.  Commercial projects, and even experimental pilot projects, generally need licenses from the Federal Energy Regulatory Commission.

Because hydrokinetic technologies are relatively new, FERC has issued only two licenses for hydrokinetic projects to date.  Two more license applications are pending, split between wave and tidal energy applications.

The pending hydrokinetic license application for wave energy is for the Reedsport OPT Wave Park in Oregon.  Developer Ocean Power Technologies (OPT) initially submitted its license application in January 2010.  If built, this would be the first commercial wave park on the west coast of the U.S.  The proposal is for an array of up to ten buoys, each of which could produce 150 kW.

The other pending hydrokinetic license application involves a tidal project in Maine.  Developer TideWorks has proposed a 5 kilowatt project in the Sasanoa River, near Bath.  This small project is proposed to provide power to a single-family dwelling on 15-acre Bareneck Island.  Because the project is proposed to have less than 5 MW of capacity, it may qualify for an exemption from licensing -- but must apply to FERC to obtain that exemption.