TEL AVIV - Eco Wave Power Global AB (NASDAQ:WAVE), an onshore wave energy technology company, announced its expansion into the Asian market with a new agreement to sell a wave energy generation unit to I-Ke International Ocean Energy Co., a subsidiary of Taiwanese maritime engineering firm Lian Tat Company. This move marks the company's first official step into Asia.
The agreement outlined that I-Ke will fully finance the initial 100KW pilot project by purchasing a turnkey conversion unit from Eco Wave Power. This unit comprises all necessary hydraulic and electric parts, along with a smart control system. I-Ke has identified the east coast of Taiwan for the pilot station and will handle permits, land use consents, and all required licensing and approvals.
The pilot project is set to be the precursor to a larger 20MW wave energy power station, with the ultimate goal of achieving a 400MW installed capacity along Taiwan's coastline. Taiwan's extensive coastline and significant wave heights present a favorable environment for harnessing wave energy.
In a joint press conference held in Taipei on Friday, CY Huang, Chairman of Lian Tat, expressed his belief in the potential of wave energy to contribute significantly to Taiwan's green electricity development and to diversify the country's renewable energy sources. The Taiwanese government supports this initiative, reflected in the marine energy wholesale purchase rate of TWD 7.32 (approximately USD 0.23).
Inna Braverman, Founder and CEO of Eco Wave Power, emphasized the project's alignment with Taiwan's technological capabilities and the potential for creating local jobs in wave-energy related sectors. She also highlighted the collaboration's role in pioneering wave energy adaptation in Asia.
Eco Wave Power is recognized for its patented wave energy technology and operates a grid-connected wave energy project in Israel. The company is preparing to install additional projects in Los Angeles and Portugal and holds a significant project pipeline.
This strategic partnership is based on a memorandum of understanding signed in June 2023 and aims to position Taiwan as a hub for further wave energy expansion in the Asia Pacific region. The information for this article is based on a press release statement.
In other recent news, Eco Wave Power Global AB reported its financial results for the first half of 2024, highlighting a decrease in operating expenses and advancements in wave energy projects. The company's operating expenses fell by 1.6% compared to the same period in 2023, with a reported $7.48 million in cash and short-term bank deposits. The EWP-EDF One project in Israel's Port of Jaffa has been supplying power to the national grid since the end of 2023, with operational improvements including a reduction in downtime from 4% in April to 0% in June and a 17% increase in energy generation from April to June 2024.
In the United States, Eco Wave Power has partnered with Shell (LON:SHEL) International Exploration and Production Inc. for a wave energy project at the Port of Los Angeles. The project's engineering plans were approved in August 2024, and a final license from the Army Corps of Engineers is anticipated shortly. In Portugal, the company has initiated the first MW-scale wave energy project in Porto, in line with a 20MW Concession Agreement with Administração dos Portos do Douro, Leixões e Viana do Castelo, S.A (APDL).
The Swedish Financial Supervisory Authority has authorized Eco Wave Power to repurchase American Depositary Shares (ADS) representing up to 10% of the total number of shares in the company. The financial overview for the first half of 2024 indicates operating expenses of $1.35 million, a slight decrease from the previous year. The company reported a net loss of $1,018,000, or $0.02 per basic and diluted share, compared to a net loss of $859,000 in the same period last year. These are some of the recent developments in the company.
InvestingPro Insights
Eco Wave Power Global AB's expansion into the Asian market aligns with its impressive financial metrics and growth potential. According to InvestingPro data, the company has seen a remarkable 312.69% price total return over the past six months, indicating strong investor confidence in its expansion strategy and technological capabilities.
InvestingPro Tips reveal that Eco Wave Power holds more cash than debt on its balance sheet, which is crucial for funding its international expansion and pilot projects. This financial stability is particularly important as the company ventures into new markets like Taiwan.
The company's impressive gross profit margin of 80.72% for the last twelve months as of Q2 2023 suggests efficient operations and potential for scaling its technology. This high margin could be attractive to partners like I-Ke International Ocean Energy Co. as they consider larger implementations following the pilot project.
It's worth noting that while Eco Wave Power shows promise, it is currently not profitable over the last twelve months. This is not uncommon for companies in the renewable energy sector focusing on growth and technology development. The company's high revenue valuation multiple reflects investor expectations for future growth, particularly as it expands into new markets like Asia.
For investors interested in Eco Wave Power's potential, InvestingPro offers 13 additional tips that provide deeper insights into the company's financial health and market position. These tips can be valuable for understanding the full picture of Eco Wave Power's investment potential as it pursues ambitious projects like the 400MW installed capacity goal in Taiwan.
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