July 13 (Bloomberg) -- Ocean Power Technologies Inc. will seek government funding in the U.S. and abroad as it develops buoys that generate electricity from waves, Chief Executive Officer Charles Dunleavy said.
The Pennington, New Jersey-based company, which trades on Nasdaq and in London, has no plans to raise funds from public markets, Dunleavy said today in a telephone interview. The company in April said it had won a $1.5 million grant from the U.S. Department of Energy to help scale up its 150-kilowatt buoy to 500 kilowatts.
“We hope to show some additional success that would supplement the grant from the U.S. DoE,” Dunleavy said. “We’re very actively engaged not just in the U.S. but also in the U.K.”
Ocean Power has not raised money in public markets since April 2007, when it secured $100 million through its Nasdaq initial public offering.
In the first half of 2010, wave power companies raised $21.6 million in venture capital and private equity and no money on the public markets, according to Bloomberg New Energy Finance data.
Ocean Power today said its net loss rose to $19.2 million for the year ended April 30 from $18.3 million the previous year, as spending on product development swelled by $4.6 million. Its shares today rose 0.4 percent to $5.18 at 10:02 a.m. in New York.
Product development costs this year won’t be as high as last year, Dunleavy said. Ocean Power can scale up production “fairly quickly” because it uses local suppliers and outsources manufacturing of the majority of its components, he said. The company doesn’t plan to build its own factories.
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