TEL AVIV - Eco Wave Power (NASDAQ:WAVE), an onshore wave energy technology company, has announced its selection by an undisclosed major energy company to conduct a comprehensive feasibility study for potential commercial wave energy stations in the U.S. and globally. The study, which commenced recently, will span three months and scrutinize 77 U.S. coastal sites for their wave energy potential and compatibility with marine structures.
The company's proprietary technology will be the focal point in identifying optimal locations for wave energy conversion. Eco Wave Power's CEO, Inna Braverman, expressed enthusiasm for the project's implications on clean energy expansion and climate change mitigation.
Eco Wave Power has been a notable player in the ocean energy industry, having established operational power stations and received various investments and accolades for its pioneering technology. The EWP-EDF One power station in Jaffa Port, Israel, notably became the nation's first grid-connected wave energy system. A pilot station is also slated for installation at AltaSea in the Port of Los Angeles, marking a significant step for the U.S. in harnessing ocean wave power.
The undertaking aligns with legislative movements in the U.S., such as California's Senate Bill 605, which mandates the California Energy Commission to assess the feasibility of wave and tidal energy. Findings by the U.S. Department of Energy's National Renewable Energy Laboratory suggest that wave energy could theoretically power over 130 million homes in the country.
Eco Wave Power, with its growing pipeline of projects and concession agreements in Europe, is gearing up for further installations, including a pilot in Los Angeles and a larger scale power station in Portugal. The company's efforts have been supported by various funding sources, including the European Union Regional Development Fund and the European Commission's Horizon 2020 program, and recognized by the United Nations with a Global Climate Action Award.
This advancement in wave energy research is based on a press release statement and aims to provide a clearer picture of the viability and roadmap for wave energy commercialization within the industry.
InvestingPro Insights
As Eco Wave Power (NASDAQ:WAVE) embarks on its mission to expand the reach of wave energy technology, investors are closely monitoring the company's financial health and market performance. With a market capitalization of just 7.44 million USD, Eco Wave Power is a relatively small but dynamic player in the renewable energy sector. Despite the challenges faced by many small-cap companies, Eco Wave Power boasts an impressive gross profit margin of 80.72% for the last twelve months as of Q1 2023, reflecting its ability to efficiently manage production costs relative to sales.
However, the company's aggressive growth strategy comes with substantial cash burn, as indicated by an operating income margin of -782.35% over the same period. This suggests that while Eco Wave Power is generating a healthy gross profit from its operations, the costs associated with expanding its reach and conducting research are currently outweighing its gross profits.
Investors have seen a significant return over the last week, with a 14.53% price total return, hinting at market optimism about the company's prospects or recent developments. Nevertheless, the stock's history of high price volatility could suggest a bumpy road ahead for share value consistency.
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