Floating an Innovative Company
Ocean Power Technologies, Inc. (OPT) is an innovative company that develops and commercializes systems that generate electricity by harnessing the renewable energy of ocean waves. In May 2007, the company tapped the capital markets for the financial resources it required to fund its development and growth. As an underwriter of the company's initial public offering in the U.S., Bank of America enabled OPT to raise $90 million. The proceeds from the equity offering are being used to fund the development and commercialization of OPT's proprietary PowerBuoy® systems, expand assembly, test and field services facilities, and construct demonstration wave power stations, among other purposes.
The company's proprietary PowerBuoy is an offshore wave energy converter, most of which is submerged below the surface of the water. Inside, a piston-like structure moves as the PowerBuoy bobs with the rise and fall of the waves. This movement drives a generator to produce electricity, which is sent to shore by an underwater cable.
"Ocean Power Technologies, an early-stage development company, is a great example of a company that is investing in new-generation technology that produces the kind of high-quality power the electric grid is used to seeing," said Scott Sanders, Bank of America's managing director, renewable energy markets. "We can be a bank that invests in and supports the growth of technologies and infrastructure that will ultimately help the environment."
- 1 Photo courtesy of Ocean Power Technologies, Inc.
Quick Facts
- Ocean Power Technologies, Inc. develops systems that generate electricity by harnessing the renewable energy of ocean waves
- Bank of America, as an underwriter of the initial public offering, helped raise $90 million for the company
- With Bank of America's help, Ocean Power Technologies has resources to fund the development and commercialization of its proprietary PowerBuoy® systems
