Ocean Power Technologies Inc., which is building the first commercial wave-power plant in the U.S., received about $1.5 million in a New Jersey program that helps unprofitable startups transfer state tax losses.
The program run by the state’s economic development authority allows some losses to be transferred to profitable companies and will help Ocean Power continue research and development of technology that produces power as waves move buoys tethered to the seabed, the Pennington, New Jersey-based company said today in a statement.
Public Service Enterprise Group Inc., New Jersey’s largest utility, agreed to buy Ocean Power’s tax-loss credits under the program. Ocean Power is building a 1.5-megawatt power project about 2.5 miles (4 kilometers) off the coast of Reedsport, Oregon, and last month said it had an order backlog of $5.2 million as of Oct. 31.
The company reported a net loss for the three months ended Oct. 31 of $4.8 million compared with a net loss of $3.9 million for the year earlier period.
Ocean Power rose 1.9 percent to $2.12 at the close in New York. The shares have declined 15 percent in the past year.