June 18 (Bloomberg) -- SDE Energy Ltd., an Israeli marine-technology developer, is in talks with Ecuador’s Ministry of Electricity and Renewable Energy to develop several power projects as the nation seeks to cut its use of fossil fuels.
The company plans to develop facilities at the Galapagos Islands and a 15-megawatt facility near the mainland, by the town of Jaramijo, that may be expanded to 100 megawatts, Tel Aviv-based SDE Energy said today in an e-mailed statement.
Ecuador is pushing for more production of energy from renewable sources to reduce its dependence on oil, according to the statement.
SDE is seeking investors to fund 40 percent of the project’s cost, which wasn’t disclosed, the company said. Ecuador may provide the remaining funds and purchase the electricity for a period of 15 years.
The South American nation pays producers of clean energy as much as $400 a megawatt-hour, according to the statement. Production costs for SDE’s power may be as low as $20 a megawatt hour making it cheaper than other renewable-energy technologies like wind farms.
SDE’s power plants use ocean swells to produce hydraulic pressure, which is then transformed into electricity, according to its website.
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