Renewable Ocean Energy Industry Overview

1
OVERVIEW
The development of a renewable energy industry has become an increasingly pressing policy
priority as the deleterious impacts of impact of anthropogenic climate change become
increasingly discernible and significant. Extensive scientific consensus now exists that “the
observed trends in atmospheric and ocean temperature, sea ice, glaciers and climate extremes
during the last century cannot be explained solely by natural climate processes and so reflect
human influences.”1
As documentation of the disruption attributable to the continued intensive
use of fossil fuels mounts it has become imperative that a sustainable energy economy must take
its place.
The world’s oceans offer a sustainable and immense source of energy. One estimate suggests that
a mere 0.1% of the energy contained in ocean waves could be sufficient to supply five times the
quantity of energy necessary to meet the world’s total energy needs.2
Ocean power offers two
significant advantages in comparison to other better-known renewable energy sources. First,
ocean power technologies are “based on well-understood principles derived from hydrodynamic
physics, marine design and construction, and mechanical and electrical engineering”.3
In other
words, the knowledge relevant to the creation of ocean power technology is longstanding and
thorough. The effort necessary to research, develop and deploy such a technology is thus smaller
in comparison to other renewable technologies in which a substantial base of knowledge is still
lacking. Secondly, ocean energy is abundant by virtue of the expansive coverage of oceans, dense
by virtue of the quality of water and predictable as a result of existing knowledge of the principles
of physics that define fluid motion.
This memo has been written to provide an overview of the ocean power industry. In particular it
is designed to provide the following:
 An overview of the profiles of European companies that offer significant expertise in the
ocean power industry. Given its central significance to the European ocean energy
technology industry the European Marine Energy Center is profiled first. Each company
profile consists of the following segments:
-‐ Company name and website address
-‐ Location
-‐ Background
-‐ Major partners and funders
-‐ Services listing
-‐ Special distinctions and features
-‐ Current and recent projects
-‐ A description of environmental impact assessment materials
-‐ Awards listing
A brief note on community engagement practices appears at the end of this section.
 A summary of recent trends and developments regarding ocean power generation
technology and deployments within Europe as well as the use of environmental impact
assessments.
 Recent developments in the ocean power generation industry in the United States.
1
http://www.usgs.gov/climate_landuse/clu_rd/pt_nat_climate.asp
2
http://ec.europa.eu/research/energy/eu/index_en.cfm?pg=research-ocean
3
http://www.greentechmedia.com/research/report/forecasting-the-future-of-ocean-power

2
EUROPEAN MARINE ENERGY SECTOR ORGANIZATION PROFILES
COMPANY: European Marine Energy Center (EMEC); http://www.emec.org.uk/about-us/
Location: Old Academy Business Centre, Back Road, Stromness, Orkney KW16 3AW, UK
Background: Founded in 2003, the European Marine Energy Center is known to be “the
internationally acknowledged leading test and certification centre for marine energy convertors”.
It is a not for profit, private company and is owned by The Carbon Trust, Orkney Islands Council
and Highland and Islands Enterprise Development Trust. Particularly significant developments in
the history of EMEC include its initiation of development of industry standards in 2004, the
creation of land-based surface visible wildlife observations programmes and its continued
expansion of sites suitable for wave and tidal testing by marine energy technology companies
based throughout the world. EMEC became financially self-sufficient in 2011.
EMEC coordinated the development of twelve industry guidelines. As noted on the EMEC
website4
six of these guidelines are “being progressed for global adoption as the first international
standards for marine energy.” Standards drafting for the ocean energy industry was assessed by
The Environment Council.5
Extensive consultation on the development of these standards has
been facilitated through the International Energy Agency Group on Ocean Energy Systems. A
March, 2014 workshop was held to review the existing collection of EMEC standards. Details on
the workshop and the final deliverables generated may be found here:
http://www.emec.org.uk/ai1ec_event/6332/?instance_id=
Major Partners/Funders/Shareholders: Significant funders in the founding and development of
EMEC include:
 Scottish Government
 Highlands and Islands Enterprise
 The Carbon Trust
 UK Government
 Scottish Enterprise
 European Union
 Orkney Islands Council
Services: A primary focus of EMEC is to provide wave and tidal energy convertors with
“purpose-built, accredited open-sea testing facilities”. Throughout its history EMEC has focused
on expanding sites suitable for such testing. In addition to test facilities the organization also:
 operates scale test sites
 provides independently-verified performance assessments
 offers research and consultancy services
 exerts a leadership role in the development and refinement of international standards
relevant to the marine energy industry
Special Distinctions and Features: As noted above, EMEC is “the internationally acknowledged
leading test and certification centre for marine energy convertors”.
4
http://www.emec.org.uk/standards/history/
5
Ibid.

3
The EMEC website serves as a centralized data source. It includes features such as a live data
portal (wave, tidal and meteorological data, marine radar, etc), an industry reports subpage that
provides links to resources and links to partner organizations active in the ocean energy industry
(http://www.emec.org.uk/marine-energy/industry-reports) and an overview of the SCADA
system. The SCADA (Supervisory, Control and Data Acquisition) system assists EMEC staff by
providing “real-time status information, trends, alarms and remote control round-the-clock”. This
system allows for secure transmission of test site data to a data centre where it is ultimately
processed for use by developers and in-house staff.
Current and Recent Projects: EMEC’s two primary categories of clientele are wave and tidal
clients. A listing of past and current tidal and wave clients can be found on the EMEC website at
http://www.emec.org.uk/about-us/wave-clients/ and http://www.emec.org.uk/about-us/our-tidal-
clients/. A brief overview of a few clientele (not otherwise profiled in this document) is provided
below:
Wave Clientele:
 Wello Oy; http://www.emec.org.uk/about-us/wave-clients/wello-oy/
A Finnish company originally founded in 2008, Wello Oy is a current client and focuses
on the development of wave energy converters. The company’s Penguin model is a
500kW model which was selected in 2008 for further progression.
 AW Energy; http://www.emec.org.uk/about-us/wave-clients/aw-energy/
Originally founded in 2002, AW Energy is a past client known for its wave energy
converter called the WaveRoller. The device consists of a plate anchored to the sea floor
whose back and forth motion (generated by tidal action) ultimately generates kinetic
energy.
 Pelamis Wave Power; http://www.emec.org.uk/about-us/wave-clients/pelamis-wave-
power/
Founded in 1998, Pelamis Wave Power (PWP) is an Edinburgh based manufacturer (and
past EMEC client) of wave energy converters known for its creation of the P1 and P2
devices. The P1 was the world’s first offshore wave power converter to successfully
generate electricity into a national grid. The P2, which ultimately evolved from the P1,
became the first wave power device to be purchased by a utility company.
Tidal Clientele:
 Voith Hydro; http://www.emec.org.uk/about-us/our-tidal-clients/voith-hydro/
A past EMEC client, Voith has an extensive renewable energy portfolio which
encompasses renewable energy, oil and gas paper, raw materials and transport. Voith is a
leading supplier of hydropower equipment and services. Voith is known for its tidal
current turbine which was successfully test in Korea. More details on its ocean current
technologies can be found here: http://www.voith.com/en/products-services/hydro-
power/ocean-energies/tidal-current-power-stations--591.html
 Magallanes; http://www.emec.org.uk/about-us/our-tidal-clients/magallanes/
A past EMEC client, Magallanes Renovanles SL was originally founded in 2007 and is
developing a floating platform to generate energy from tidal currents. The company
successfully deployed its floating turbine in November 2014 with support from the
Marinet project. The Marine Renewables Infrastructure Network (Marinet) exists to

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accelerate the development of marine renewable energy through the progression of
research and development at all scales. More information regarding Marinet can be found
here: http://www.fp7-marinet.eu/
 Andritz Hydro Hammerfest; http://www.emec.org.uk/about-us/our-tidal-clients/andritz-
hydro-hammerfest/
Established in Hammerfest, Norway in 1997 this company and current EMEC client is a
part of Andritz Hydro GmbH group. The company successfully deployed its pre-
commercial tidal turbine in December 2011. The turbine delivered energy to the grid for
the first time in February 2012. The prototype which eventually gave rise to the HS1000
turbine holds the distinction of being in operation for more than 17,000 hours and has
delivered more than 1.5 GWh to the grid. More information on the company can be found
at www.hammerfeststrom.com.
 Atlantis Resources Corporation; http://www.emec.org.uk/about-us/our-tidal-
clients/atlantis-resources-corporation-2/
A current EMEC client, Atlantis Resources Corporation offers a number of services
including, but not limited to, tidal power generation technology development, turbine
technology solutions, Greenfield project origination, site selection, resources assessment,
offshore installation and completion management to a variety of clients including
governments, utilities and power companies throughout the world. Atlantis tested its
AR1000 tidal turbine in the summer of 2011 and is currently planning large-scale
commercial deployment at several sites throughout the world.
Environmental Impact Assessment: Given its role as described in the history section of the
organization profile EMEC plays a substantial role in all aspects of the ocean energy industry. In
regards to the topic of environmental impact assessment EMEC offers the following resources:
 EMEC support of client developers requires developers wishing to install at grid-
connected sites provide the following as part of their marine license applications:
environmental report, environmental monitoring and mitigation plan, navigational risk
assessment, third-party verification certificate and a decommissioning programme.6
 EMEC operates a Monitoring Advisory Group designed to “extend and coordinate the
ongoing monitoring discussions it has had with regulators and their consultees.”7
Through its provision of test sites facilities in one centralized location EMEC assists the
ocean energy technology industry by driving the creation of effective and reproducible
testing and monitoring methods. By removing the onus of device monitoring from
developers EMEC reduces the risk of varied monitoring approaches being used that
would thereby hinder effective development of the industry.8
 Use of the search function on EMEC’s website provides a large number of results related
to the issue of environmental assessment. Search results include workshop and class
materials focused on impact assessment and associated best practices, conference
announcements and research materials such as articles and guideline documents. A vast
majority of the search results do not contain documents specific to environmental impact
assessment or are too dated to be considered current. One class recently held in 2014
6
http://www.emec.org.uk/services/consents/
7
http://www.emec.org.uk/emec-monitoring-advisory-group/
8
Ibid.

5
does, however, offer some relevant content. Details on the course can be found here:
http://www.pro-tide.eu/portfolio/pro-tide-ecology-master-class/
 EMEC was instrumental in the creation of an EIA guidelines document. As noted in the
Disclaimer section of the document the purpose of the guidelines are to “encourage and
assist developers to consider as fully as possible the range and scale of impacts that might
result from the testing of their devices at EMEC.”9
A brief summary of the contents of
the Environmental Impact Assessment Process section (Section 2) of the document
appears below10
:
o 2.1 Introduction – Provides a figure illustrating the sequential process a
developer must follow to prepare an EIA.
o 2.2 Environmental Scoping – A developer outlines the key potential impacts that
may result from testing of the device in question.
o 2.3 Content of the Environmental Statement – A primary purpose of the
Environmental Statement (ES) is to “provide a comprehensive and transparent
account of the decision making process”11
. The ES should include the following:
 Non-technical summary
 Environmental description
 Basis for design
 Device description
 Summary of EIA process and justification of impacts considered
potentially significant
 Summary of key findings
 List of all commitments made by the developer to minimize negative
environmental impacts and optimize benefits
o 2.4 Environmental description – The aforementioned Environmental Description
provides a description of how the EMEC test site could potentially impact the
device to be tested.
o 2.5 Project description – The developer must also provide “a comprehensive
description of their device and associated activities, with particular focus on the
issues that are important from an environmental perspective.” Consult the
guidelines document for specific guidance.
o 2.6 Environmental impact assessment – This final section contains a table that
enumerates twenty-one different ecological, socio-economic and management
issues which should be used as a checklist when considering the full range of
potential impacts that may result due to the operation of a device.
 A number of current and recent site-specific projects feature an emphasis on the
monitoring of potential impacts. Some of these projects include the following12
:
o Wildlife Observations Programme
o Acoustic Monitoring Programme
o ReDAPT
o Inshore Crustacea Fisheries Project
o Surface Interactions with Wave Devices: Remote Observations
9
http://www.energycentral.com/download/products/EMEC_EIA_Guidelines.pdf
10
Ibid.
11
Ibid.
12
http://www.emec.org.uk/research/emec-site-specific-projects/

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Awards: A listing of current EMEC clients can be found at the bottom of the main web page:
http://www.emec.org.uk/
COMPANY: Aquamarine Power; http://www.aquamarinepower.com/
Location: Head Office is located in Edinburgh - Elder House, 24 Elder Street, Edinburgh, EH1
3DX
Background: Aquamarine Power was founded in 2005 as a result of a collaboration between
Professor Trevor Whittaker’s research and development team of Queen’s University and the
funding support of Allan Thomson, retired founder of WaveGen. Whittaker’s R&D team
ultimately developed something known as the Oyster wave energy device. The first full-scale
prototype Oyster wave energy convertor was completed in 2008.
Major Partners/Funders/Shareholders: Bosch Rexroth, ABB, SSE, Scottish Enterprise. For an
exhaustive list please visit here: http://www.aquamarinepower.com/about-us/partners-and-
funders.aspx
Services: wave powered pump technology, marine energy forecasts, real-time wave data
collection
Special Distinctions and Features:
 First wave energy company in the world to be awarded third party validation of a wave
energy device
 Proprietary marine resource database allows for selection of optimum sites for wave
energy technology deployment
Current and Recent Projects:
 Oyster 800 Project, Orkney - Testing of this wave energy machine began in June, 2012.
The Oyster 800 has a maximum generating capacity of 800kW and is installed at the
European Marine Energy Centre in Orkney. Oyster 800 and second-generation Oyster
800 incorporate three key selling points. These are simplicity, survivability and shore-
based electricity generation.
 North-west Lewis - Aquamarine is currently developing the largest fully-permitted ocean
energy site off the coast of Lewis, Scotland. The ultimate goal of this project is the
deployment of forty to fifty Oyster devices that will offer an installed capacity of 40 MW
and will be able to power approximately 30,000 homes. This project is a competitor in
the Scottish Government’s Saltire Prize. For more details on this competition visit the
prize website: www.saltireprize.com
 Western Isles marine energy research project – Aquamarine Power is serving as the lead
industry partner in this Scottish Funding Council funded project. The project is led by
Lewis Castle College and has numerous supporters including marine energy developers
and utilities. This research programme will feature tasks including seabed surveying as
well as wave energy resource assessments.

7
Environmental Impact Assessment: A review of the company website produces two documents
with content relevant to the practice of environmental impact assessment. These are the
following:
Brough Head Wave Farm Ltd – Scoping report, Aug 201113
- This scoping report provides an
assessment of potential impacts within three different environments. These categories are the
physical, biological and human environments. A separate section (Section 5) describes the
process of environmental issues identification (ENVID process). The purpose of the scoping
report is “to facilitate the identification and assessment of the potential environmental impacts
associated with this project.”14
As such it represents the first stage of the EIA process. A
summary of the matrix of relationships within the consents and licensing environment is available
in section 2.2.
Oyster 2 Wave Energy Project Environmental Statement, June 201115
- This statement contains a
number of sections relevant to the assessment of the energy project on the marine environment.
These are:
 7 – Environmental Impact Assessment Methodology and ENVID
 8 – Marine Wildlife Impact Assessment
 9 – Seabed Interactions Impact Assessment
 10 – Navigational Safety Risk Assessment
 11 – Accidental Discharges
 12 – Environmental Management and Monitoring
Awards:
 National Recycling Bronze Award 2011
 Global Energy Magazine 'Most Innovative Marine Power Technology' Award 2011
 Top 2 Best Workplaces Scotland Award 2011
 NHS Healthy Working Lives Silver Award
 Rosenblatt Entrepreneur of the Year 2011
 Green Energy Award for Innovation 2010
 Institute of Directors Environmental Leadership Award 2010
 Renewable Energy Association Award for Innovation 2010
COMPANY: Aquatera; http://www.aquatera.co.uk/ContactAquatera.asp
Location: Stromness Business Centre, Stromness, Orkney, KW16 3AW, UK
Background: Aquatera, established in 2000, offers a variety of environmental services and
products to the renewable energy and other energy industries. Aquatera offers four main services.
These are 1) lifecycle support for renewable energy and other environmental projects, 2)
environmental assessment, surveying and management, 3) technical and operational support and
4) public and stakeholder communications.
13
http://www.aquamarinepower.com/sites/resources/Reports/3022/Brough%20Head%20Wave%20Farm%2
0Scoping%20Report.pdf
14
Ibid., p.10.
15
http://www.aquamarinepower.com/sites/resources/Reports/2880/Oyster%202%20Array%20Project%20E
S%20-%20Main%20Document.pdf

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Major Partners/Funders/Shareholders: UK Department of Trade and Industry
Services: strategic environmental assessment, environmental impact assessment, resource
assessment studies, risk assessments, design advice, operations support, environmental surveying,
visualization tools, oil and gas industry supply chain analysis
Special Distinctions and Features:
 Website offers a project database to easily identify projects of interest by location and
topic
 Online Tools and Resources section offers tools including:
o Weather and Operational Support Information Gateway
o Video library
o Fishing Cultural Heritage Network (http://www.fishernet.is/en/)
 Expertise extends beyond renewable energy industry to other environmental studies and
issues as well as social studies
*As there are a large number of projects (~270) contained in the company database a selection of
eight projects have been profiled below. Projects focused on environmental assessment are
emphasized:
 Resource Analysis and Digital Mapping Application Database and Graphic Interface
(RADMAPP)
http://www.aquatera.co.uk/KeyAquateraProjects.asp?index=2#proj
Category: Strategic Planning
This bespoke database offers the functionality typical of a GIS software program without
the specialist knowledge, training or software that may often accompany such programs.
A bespoke database is one that is designed according to the specific needs or objectives
of a client. A variety of data relevant to different resource management issues
applications may be mapped using such a program.
 Wavegen Resource Analysis and Digital Mapping Application (RADMAPP) Coastal
Wave Resource Assessment
Category: Environmental Assessment and Surveying
Using RADMAPP technology an analysis of the UK and Irish coastlines was performed
for the purpose of assessing locations for their potential suitability for the siting of coastal
wave devices. Locations were assessed according to parameters including coastline type,
cliff height, tidal range and water depth. This project demonstrated the value of using
RADMAPP in the review of large geographic areas.
 Marine Renewables EIA Guidance Procedures
The European Marine Energy Centre (EMEC) jointly commissioned Aquatera and

9
Exodus Aurora to prepare a document that would provide guidance on the suitability of
different devices at test sites. Device-specific environmental impact assessments were
compiled to create a set of guidance notes for use by the EMEC in its interactions with
prospective developers. More information on this project can be found under the EMEC
profile.
 Renewable Energy Resource, Constraint and Development Database (RERA)
Category: Public and Stakeholder Communications
Aquatera has developed an extensive database by virtue of its previous project work. The
database contains data especially valuable to the analysis of resource, constraint, cost and
potential development patterns for a number of geographic areas. Those areas include the
Scottish Highlands, Isle of Man, coastal Oregon and the UK and Irish coasts. Given the
ongoing inclusion of additional datasets Aquatera’s database may prove of value in a
growing variety of both specialized and general assessments.
 Device-specific EIA for OpenHydro’s Tidal Trials at EMEC
OpenHydro tested its Open-Centre Turbine at the EMEC tidal energy test site. Aquatera
applied the EMEC’s EIA procedures to perform a device-specific EIA of the turbine. The
impact assessment consisted of an identification of all possible interactions. These
interactions were then screened to determine the locations where significant effects
would likely be observed.
 Tidal Device Operational Risk Assessment
Category: Integrated Renewables Support
Closely related to the previously described EIA performed for OpenHydro’s turbine is an
operational risk assessment. This risk assessment was also performed by Aquatera and
consisted of nine sequential tasks. These tasks included, but were not limited to, the
following: Establishment of background and scope of project, an expert panel HAZard
Identification (HAZID) of all potential activities and an assessment of risk through
classification of likelihood and consequence.
 Wave Energy Device Environmental Impact Assessment and Resource Assessment
Ocean Power Technologies selected Aquatera to complete a device-specific EIA for
OPT’s Powerbuoy. The environmental scoping information and environmental statement
completed as part of this project are intended to identify potential environmental impacts
that may results from the deployment of the device. Such materials must be generated by
developers who plan to conduct a deployment test at EMEC.

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 Magnus EOR Project
Impacts to flora and fauna may prove to be a significant concern when evaluating the
suitability of siting ocean energy technology in a particular location. Aquatera completed
a project on behalf of BP in which it prepared EIA documents that featured assessments
which included attention to nearby candidate special areas of conservation and Annex 1
species listed in European wildlife directives. Given the special commendation Aquatera
received for this project it is worthwhile noting it as a good example of the company’s
capacities.
Environmental Impact Assessment: The Marine Renewables EIA Guidance Procedures project
previously referenced (http://www.aquatera.co.uk/KeyAquateraProjects.asp?index=5#proj)
ultimately produced a guidelines document available from EMEC. Given EMEC’s significant
position in the European ocean energy industry consultation with the centre may ultimately prove
of great value in developing valuable knowledge regarding the current state of the art regarding
the creation and application of environmental impact assessments in the ocean energy technology
industry. More details on the work of EMEC in the creation of EIA Guidelines can be found here:
http://www.energycentral.com/download/products/EMEC_EIA_Guidelines.pdf
Awards:
 MIT Entrepreneurship and Innovation Scholarship Participant 2008
 Scottish Planning Awards Commendation 2007
 Highlands and Islands Small Business of the Year Commendation 2003
 Highlands and Islands Enterprise Business of the Year Award 2002
 BP Helios Award 2001
COMPANY: EVE; http://www.eve.es/Proyectos-energeticos/Proyectos/Energia-
Marina.aspx?lang=en-GB
Location: Alameda de Urquijo, 36 - 1º • Edificio Plaza Bizkaia • 48011 BILBAO
Background: The Basque Government’s energy agency, also known as the Basque Energy Board
(EVE), exists to propose and develop energy strategies. Strategies are formulated according to
criteria including supply security, cost competitiveness, sustainability and technological
development. A primary outcome of the Basque government’s ninth legislature was the
development of the Energy Strategy for the Basque Country 2020 (3E2020). This strategy
includes a goal that 14% of total energy demand will be met by renewable energy by the year
2020. Marine energy projects are currently being developed as a portion of the Basque
government renewable energy portfolio.

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By 2020 marine energy is forecast to contribute a total of 110 MW of installed capacity through a
combination of wave energy (60 MW) and floating offshore wind power (50MW). Primary
aspects of wave energy technology development include plans to:
 Launch initiatives to enhance the position of the Basque network of R&D+I agents and
value chain as an international reference point.
 Support Basque companies in developing a specific offer for wave energy, including
WEC components (power generation systems), equipment and auxiliary wave farm
services.
Major Partners/Funders/Shareholders: EVE operates a grant programme focused on
supporting the demonstration and validation of emerging marine energy technologies. Subsidies
may be awarded in response to proposals to conduct pilot tests for demonstrating and validating
prototypes of wave energy converter (WEC) technology, floating platforms, offshore turbines and
equipment complementary to the aforementioned technologies.
Services: EVE is guided by a vision focused on the following priorities:
 Promoting singular projects with stakeholders that are best positioned to make a
contribution
 Create market opportunities
 Contribute energy-related values
 Comply with Department of Economic Development and Competitiveness’s plans and
objectives
 Engage in valuable public-private partnership
Service objectives focus on the topics of energy, technological development, economic resources
and values meaningful to society.
Special Distinctions and Features: Mutriku Plant (noted below)
Three major projects are currently profiled on the company website:
 Biscay Marine Energy Platform (Bimep) – Bimep offers infrastructure for testing and
demonstration of marine energy converters. Scheduled to begin operation in 2015, Bimep
exists to serve as a site to demonstrate the technical and economic viability of marine
energy converters. Bimep infrastructure is also meant to support research efforts to
ultimately further the development of the marine energy technology industry.
 Mutriku Plant – The Mutriku plant opened in July 2011 and is the first commercial plant
in continental Europe to generate electricity using wave energy. 100% of the generated
electricity is distributed via the grid for general consumption.
The plant received funding support from the European Commission’s Seventh
Framework Programme16
and will reduce carbon related energy production emissions by
an annual amount of 600t. The plant utilizes oscillating water column (OWC) technology
provided by Voith Siemens Hydro subsidiary Wavegen.17
16
http://www.power-technology.com/projects/mutriku-wave/
17
Ibid.

12
 Oceanera-Net – The EVE website currently profiles the OCEANER-NET project. This
project seeks to create a framework for funding research and development of ocean
technology throughout what is known as Europe’s Atlantic Arc. The first project call
opened in October 2014. More details on theme areas and the timeline for the first call
can be found on the company website here: http://www.eve.es/Proyectos-
energeticos/Proyectos-europeos/OCEANERA-NET.aspx
Environmental Impact Assessment: There are no substantial resources currently profiled on the
company website regarding this topic.
Awards: No award references were noted on the company website.
COMPANY: Scotrenewables Tidal Power Ltd.; http://www.scotrenewables.com/
Location: Innovation Centre-Orkney, Hatston Pier Road, Kirkwall, Orkney, Scotland KW15 1ZL
History: Founded in 2002, Scotrenewables was established to create cost effective tidal and river
hydrokinetic turbines. An emphasis on low installation and maintenance costs ultimately led to
the design of floating turbine that features retractable rotors. After a number of years of testing its
technology the company launched its SR250 250kW prototype in 2009. This was the first large
scale floating tidal turbine in the world.
The company has continued to grow in recent years due in part to the investment support of ABB
Technology Ventures in 2012. Even more recently (2014) Scotrenewables opened its own
production facility. The company is expected to again make news this year when it launches the 2
MW SR2000 turbine.
Major Partners/Funders/Shareholders: The three main investors of the company are TOTAL
(2006), Fred. Olsen Group (2008) and ABB Technology Ventures (2012). The company tested its
SR250 prototype with the assistance of a 2 ½ year testing programme at the European Marine
Energy Centre.
Services: Produces tidal and river hydrokinetic turbines. Through an emphasis on low cost
installation, maintenance and decommissioning the company is working to drive down the cost of
tidal energy generation.
Special Distinctions and Features: The company plans to launch a 2 MW turbine called the
SR2000 in 2015. The turbine is projected to be the largest and most powerful tidal turbine in the
world.
Current and Recent Projects: The primary current project is the creation of the SR2000 turbine.
The turbine has been designed to minimize the cost of electricity production across its entire
lifecycle. The design of the turbine also allows for deployment in areas where tidal conditions
feature lower tidal speeds. An exposition of this project can be found here:
http://www.scotrenewables.com/sr2000.
Environmental Impact Assessment: Scotrenewables recognizes the importance of protecting
the marine environment as well as the potential impacts that may result from the testing and
ultimate deployment of marine energy technologies. Testing of the SR2000 turbine was

13
accompanied by a Project Specific Environmental Monitoring Plan developed with the assistance
of Marine Scotland and Scottish Natural Heritage.18
The monitoring plan will focus specifically
on potential impacts of the turbine on marine mammals and diving birds.19
Awards: More details on the investment of partner organizations can be found here:
http://www.scotrenewables.com/company/partners
COMPANY: ScottishPower Renewables; http://www.scottishpowerrenewables.com/
Location: Cathcart Business Park, Spean Street, Glasgow, Scotland G44 4BE
History: ScottishPower Renewables, a part of Iberdrola, is known for its onshore, offshore, wave
energy and tidal energy projects. Iberdrola is the world’s largest wind energy developer; it boasts
an operating portfolio of over 14,000 MW.
Major Partners/Funders/Shareholders: Detailed content on ScottishPower Renewables is not
currently available on the company website. Iberdrola Renewables, LLC is focused on
transforming the production and use of energy in the United States. Iberdrola offers expertise in
the provision of structured energy solutions; its portfolio in the United States emphasizes biomass
and solar energy resources.
Services: ScottishPower Renewables operates according to a number of principles:
 Developing Renewable Energy Responsibly – The development of renewable energy
projects follows a trajectory of steps including repeated community consultation, the
preparation of an environmental impact assessment and the submission and evaluation of
applications to the relevant determining authority.
 Enhancing the Environment – Environmental stewardship requires that a number of
criteria be considered when developing renewable energy projects. Important criteria
include the preservation of biodiversity and related habitat as well as respecting the
impact such development may have on local cultural and natural resources.
 Powering Communities – Local community acceptance of projects is vital to successful
development and implementation. Communities may be engaged during all phases of a
project including development, construction and operation.
 Landowner Partnerships – Landowners may actively support renewable energy projects
in any number of ways.
Special Distinctions and Features: ScottishPower Renewables has a planning success rate of
over 90% within the windfarm energy industry.
Current and Recent Projects: In addition to testing wave and tidal energy technologies at the
European Marine Energy Centre the following recent projects are also noteworthy:
 Marwick Head – A wave energy project with the potential to generate 50 MW of power
in the vicinity of Marwick Head is currently being explored.
18
http://www.scotrenewables.com/technology-development/environment
19
Ibid.

14
 Ness of Duncansby – A tidal wave energy project capable of generating 95 MW is
currently under investigation.
 Sound of Islay – Through a collaboration with the Islay Energy Trust ScottishPower
Renewables seeks to develop a Sound of Islay Demonstration Tidal Array with devices
offered by two partner companies. These devices are the Andritz Hydro Hammerfest
HS1000 and the Alstom 1 MW tidal turbine.
Environmental Impact Assessment: ScottishPower Renewables is recognized as a leader in the
field of developing habitat management plans for its windfarm developments.20
There is minimal significant data regarding the company’s use of environmental impact
assessments within the specific realm of ocean energy technology available through the company
website to make substantial conclusions about the nature and effectiveness of the methodologies
that would be commonly used in these assessments. Two projects noted above have assessment
materials which may be accessed via the company website. These projects are the Marwick Head
wave energy project and the Sound of Islay tidal energy project. The Scoping Report for the
Marwick Head project
(http://www.scottishpowerrenewables.com/userfiles/file/Marwick%20Head%20Scoping%20Report%20FI
NAL%2021_12_12.pdf) provides a section that focuses on the environmental baseline and potential
effects that may be associated with the project. Described effects are grouped according to the
categories of physical environment, biological environment and human environment.
Awards: None currently noted on company website.
COMPANY: Xodus Group; http://www.xodusgroup.com/
History: The Xodus Group is an independent, international energy consultancy dedicated to the
oil and gas and low carbon energy markets. The company vision is to be the world leader in
energy engineering. Xodus Group seeks to realize this vision through adherence to values
including customer satisfaction, people focus, technical integration and a rewarding working
environment based on teamwork, honesty and respect.
Major Partners/Funders/Shareholders: Major clientele include field and technology
developers, IOCs, NOCs, marine contractors, banks, investors, law firms, government bodies,
public-sector institutions.
Services: Xodus Group offers six primary services:
Xodus Develop – Offers consulting skills within the topics of energy production, processing and
transportation, technology development and application, environmental performance, technical
safety, regulatory compliance and risk analysis.
Xodus Subsea – Xodus emphasizes teamwork and fitness-for-purpose in the integrated approach
it brings to subsea projects. Its areas of expertise include the following:
 Flow assurance
 Materials selection
20
http://www.scottishpowerrenewables.com/news/pages/scottishpower_renewables_clears_the_way_for_th
e_creation_of_ideal_bird_habitat_at_whitelee_windfarm.asp

15
 Detailed design analysis
 Riser system optimisation
 Installation analysis and procedural support
 Spool/jumper stress analysis
 Flow induced/vibration induced fatigue screening
 Detailed Upheaval Buckling (UHB) analysis
 Subsea control packages
 Mechanical design of rigid pipeline systems
 Structural design
 Verification of third-party designs
 Specialist geotechnical and geophysical support
 Deepwater
Xodus Advisory – Supports technical projects, risk and value advice and regulatory compliance.
Key capabilities include:
 Acquisition and divestment support
 Independent reserves and resource reports
 Reserves and portfolio management
 Fiscal modeling
 Asset audit and strategy
 Expert witness opinions pre/post litigation
Xodus Projects – Xodus provides support to clients’ Front End Engineering Design (FEED) and
Detailed Design and Project Management/Owner’s Engineers Services needs. Capabilities
include:
 Onshore oil and gas production and gathering facilities
 Modular production facilities
 Offshore platforms and jackets design
 Floating production system topsides design
 Subsea and pipelines
 Unmanned platforms
 Cost estimating
 Schedule development
 EPC ITT package preparation and contractor selection support
 Project management / Owner's Engineer Services
Xodus Assure – Xodus works with its clientele to successfully quantify and manage risk. Focus
areas include:
 Advanced Structural Engineering
 Compliance Management
 Computational Fluid Dynamics
 Dynamic Process Simulation
 Fatigue & Fracture Mechanics
 Finite Element Analysis
 Flow Assurance
 Integrity Management
 Materials & Corrosion
 Noise Engineering
 Production Chemistry
 Reservoir Technology
 Risk & Uncertainty

16
 System Optimisation
Xodus Wells – Xodus provides expertise in conventional drilling, testing, completion and well
intervention services. Xodus’s worldwide operations in onshore and offshore operations including
domains such as High Pressure High Temperature (HPHT) wells and deepwater operations.
Benefits of Xodus expertise include the following:
 Technical expertise from a single, highly integrated source
 Reduced number of interfaces
 Shorter project lead times
 Design and analysis expertise supported by execution experience
 A blend of local knowledge and international operating and management standards
 Proactive management and mitigation of risk through management practices and
processes
 A focus on total project delivery
 Support from other Xodus resources including safety, risk management, environmental,
subsurface, subsea and process engineering.
Special Distinctions and Features: Xodus Group is noteworthy for the geographic breadth of its
work. For example it has performed merger and acquisition technical and commercial advisory
work in locations including deepwater West Africa, onshore North Africa, East Africa, Kurdistan
and the North Sea.
Current and Recent Projects: The Xodus Group website offers a case study section21
where a
variety of past projects are profiled. Each case study provides tripartite content including the
challenge or objective of the project, the scope of the assignment and project results.
Environmental Impact Assessment: Though Xodus Group does have a division dedicated to the
provision of a variety of environmental services22
there is little content available through the
company website that provides examples of assessments performed for past clientele.
Environmental services offered at the field development stage include the following:
 Environmental, Social and Health Impact Assessments (ESHIA)
 Preparation of Environmental Statements (ES)
 Stakeholder engagement via Environmental Issues Identification (ENVID) workshops
 Developing Environmental Management Plans (EMP)
 Geographical Information Systems (GIS)
 Environmental engineering
 BAT, BPEO and BEP assessments
 Dispersion modelling
 Carbon assessment
 Environmental sustainability planning
 Materials and emissions inventories
 Acoustics and vibration assessments
Awards: -
COMMUNITY ENGAGEMENT
21
http://www.xodusgroup.com/case-studies
22
http://www.xodusgroup.com/develop/environmental-services

17
The seven organizations profiled employ a variety of means to actively engage with the broader public.
These include:
 Public information workshops, exhibitions and information days
 Publically accessible company websites that profile the work of the company in varied sections
including case study databases and media
 Conferences
RECENT TRENDS
This section provides content on two trends within the ocean power industry. These are trends in
the development of ocean power generation technology within Europe and trends in the use of
environmental impact assessments.
THE EUROPEAN OCEAN ENERGY INDUSTRY
The European Union is a global leader in current ocean energy technology development. The EU
Joint Research Centre notes that approximately half of tidal energy and wave energy developers
are based in the EU.23
Ocean energy is mostly used for electricity production and currently
supplies a mere 0.02% of EU energy needs.24
The European Commission has provided funding
support to ocean energy research since the late 1980s.25
A brief analysis of policy options
available to spur on the growth of the European ocean energy technology industry can be found in
a 2014 document published by the European Commission.26
Funding support over the last
twenty-five years has been focused on the following priorities27
:
 Marine testing and power production optimization
 Cost efficient floating devices for wave energy conversion into electricity
 Scale pilot projects to exploit marine currents
 Power production derived from salinity gradient power
 Deep off-shore multipurpose conversion platforms for wind and ocean energy
 Pre-normative research for ocean energy
 Development of a strategy to guide ocean research activities
Ocean energy offers the potential to play an important role in Europe in three distinct ways28
:
1) as a source of renewable energy it would contribute to the decarbonisation of the energy supply
and thus contribute to the realization of EU goals for a future low-carbon Europe29
in which
greenhouse gas emissions are reduced to 80-95% below 1990 levels by the year 2050,30
2)
23
https://ec.europa.eu/jrc/en/news/ocean-energy-eu-leads-technology-development-and-deployment
24
http://ec.europa.eu/research/energy/eu/index_en.cfm?pg=research-ocean-background
25
http://ec.europa.eu/research/energy/eu/index_en.cfm?pg=research-ocean-support
26
http://ec.europa.eu/maritimeaffairs/policy/ocean_energy/documents/swd_2014_12_en.pdf
27
Ibid.
28
29
http://www.roadmap2050.eu/attachments/files/Roadmap2050-AllData-MinimalSize.pdf
30
http://www.si-ocean.eu/en/upload/docs/SIOcean_Market_Deployment_Strategy-Web.pdf

18
increase energy security through the utilization of existing indigenous resources and 3) drive
economic growth in coastal areas of European states
The United Kingdom is especially associated with the ocean power industry due to its leadership
in the development of the industry.31
Significant recent and predicted near-term future events in
the ocean power industry within Europe as a whole include the following:
2012: The Low Carbon Innovation Coordination Group publishes the Marine Energy Technology
Needs Assessment.32
The assessment notes that marine could “usefully contribute” to the UK
energy mix beginning in the 2020s.33
The assessment further notes the following: “Costs of
energy generated will need to reduce by 50-75% within this timeline (the next ten years) if marine
energy is to compete with offshore wind and other technologies.”
2012-2014: The Strategic Initiative for Ocean Energy (SI Ocean) was a 2-year project supported
by the European Commission’s Intelligent Energy Europe Programme. The initiative’s primary
goal was to “deliver a common strategy for ensuring maximal wave and tidal energy installed
capacity by 2020, paving the way for exponential market growth in the 2030 and 2050
timeframes.” Primary topics explored to meet the initiative’s overarching focus were resource
assessment, technology assessment and market deployment. The geographic focus of the project
was the six European nations that possess Atlantic Ocean resources: Denmark, France, Ireland,
Portugal, Spain and the UK.34
2014: SI Ocean releases a report providing a wave and tidal energy market deployment strategy
for Europe. Four categories of risk are identified as impeding development of the European ocean
energy technology sector. These are financial risk, technology risk, project consenting risk and
grid-related risk.35
2014: The European Commission proposed the creation of an Ocean Energy Forum that would
bring together stakeholders for the purpose of building capacity and cooperation.36
2014: The Energy Technologies Institute (ETI) and the UK Energy Research Centre (UKERC)
jointly issued a Marine Energy Technology Roadmap 2014 document. The document, designed to
provide an update on changes in the marine energy sectors since 2010, was created “to identify ad
prioritise the key technology and deployment issues faced by the marine renewable energy sector
in the UK.”37
This document is meant to be utilized in conjunction with the previously referenced
Marine Energy Technology Innovation Needs Assessment.
2016: The UK is expected to deploy its first tidal energy array. This would represent the first
ocean energy array project to be completed worldwide.38
Current Challenges
31
Ibid.
32
https://www.carbontrust.com/media/168547/tina-marine-energy-summary-report.pdf
33
Ibid.
34
http://www.si-ocean.eu/en/Project/Overview/
35
http://www.si-ocean.eu/en/upload/docs/SIOcean_Market_Deployment_Strategy-Web.pdf
36
Ibid.
37
http://ukerc.rl.ac.uk/Roadmaps/Marine/Marine_Roadmap_FULL_SIZE_DIGITAL_.pdf
38

19
The aforementioned Strategic Initiative for Ocean Energy produced a report detailing the challenges faced
by the ocean energy industry entitled Ocean Energy Technology: Gaps and Barriers. According to the
report there are a number of technical and non-technical challenges that may hinder the full realization of
the potential of the European ocean energy technology sector.39
These challenges are briefly enumerated
below. More detailed information can be found in the report.
Technology – Sharing the knowledge of aspects of ocean energy device design common to a number of
concepts may instigate greater supply chain interest and thereby increase market potential.
Installation, Operation and Retrieval - Collaborative thinking may allow different device developers to
drive down the costs of installation, deployment and retrieval.
Innovation vs. Commonality – A greater commonality of components among multiple device designs may
stimulate more interest on the part of supply chain companies and thereby increase prospects for
development of new products that offer a greater number of potential applications. As noted in the report:
“There must be greater levels of collaboration and design convergence within the ocean energy sector in
order to enable a larger demand from supply chain companies.”40
Enabling Technologies for Array Development – Deployment of technologies may not always be possible
using optimal strategies. Such instances underscore one aspect of the value of sufficient funding and other
support such that the use of less than optimal deployment practices is minimized.
Infrastructure – Limited grid connectivity may adversely affect prospects for technologies to make
meaningful contributions for which they are designed. As the reduced timeliness of technology
development and deployment may adversely affect the willingness of partner organizations to support
research and development it is vital that grid availability and reliability be improved.
Policy – The policy environment for ocean energy technology development may be enhanced by
addressing potential issues such as innovation funding and the processes that govern site assessment and
leasing.
Economic Expectations – Common performance metrics may help standardize the emerging industry and
would thereby facilitate a better relationship between investors and technology companies. Some
suggested performance metrics could include reliability, total generation output (GWh) and current
technology cost.
Environmental – There are a number of issues of concern regarding the potential environmental impacts of
ocean energy technology. These are as follows41
:
 Regulatory environment – Obtaining permits to carry out prototype testing is often difficult;
there needs to be a simplified consenting and permitting process.
 Grid connectivity – Successful testing of prototypes may be hindered by limited access to grid.
 Costs - High monetary and time costs of environmental monitoring drain resources that could be
used for technology R&D. Lowering the stringency of regulation that impacts the development
process of prototypes would also result in cost savings.
 Assessment methodology – Environmental impact assessment requirements for solo devices are
stringent and expensive as compared to large-scale deployment. Also, the creation of
environmental impact assessments at new sites must often generate new baseline data due in part
to the fact that such assessments typically do not reference findings at existing sites.
 Information sharing – Pooling of environmental impact data within the industry would increase
39
http://www.si-ocean.eu/en/upload/docs/WP3/Gaps%20and%20Barriers%20Report%20FV.pdf
40
Ibid., p.35.
41
Ibid., p.30-32.

20
efficiency by reducing duplication of efforts.
A good example of a streamlined system to potentially emulate throughout the EU is the Marine Scotland
Licensing system.
Timescale and Targets – A reduction in the deployment targets that Member States of the EU seek to
achieve by 2020 may lead to a loss of credibility in the ocean energy technology sector. Updated targets
must be achievable. In addition, a greater sense of urgency may help improve the success rate of achieving
future targets.
Risk Management – The major actors within the ocean energy sector currently do not display a significant
willingness to share risk. Also significant is the fact that “the current deployment pathway of wave and
tidal energy technology appears to be taking a technological jump that is larger than the economic will (or
ability) of the investors.”
Knowledge Transfer – Industries that possess knowledge and expertise relevant to the emergent ocean
energy technology industry must be actively engaged through processes such as application of best
practices and consultation. Such knowledge transfer may reduce avoidable errors in the industry’s
developmental pathway as well as accelerate the deployment of ocean energy technology on a scale
compatible with its potential.
ENVIRONMENTAL IMPACTS OF OCEAN ENERGY TECHNOLOGY
A thorough understanding of the potential and common impacts of ocean energy technology is
still nascent. This reality can be attributed primarily to the fact that the ocean energy technology
industry is still an emergent one. A primary source of data on the impacts of varied ocean energy
technologies is available through a database prepared through the efforts of a project called
Annex IV.
Annex IV is a collaborative project of international scope designed to examine the environmental
effects of marine energy devices. The United States DOE functions as the “Operating Agent” of
Annex IV. The US DOE partners with the previously profiled BOEM as well as the Federal
Energy Regulatory Commission and the National Oceanic and Atmospheric Administration in
efforts related to this topic.42
Thirteen member nations of the International Energy Association’s
Ocean Energy Systems participated in the Annex IV project. These nations are the United States,
Canada, the United Kingdom, Ireland, Portugal, Spain, Norway, Sweden, Nigeria, South Africa,
China, Japan and New Zealand. Annex IV exists “to facilitate efficient government oversight of
the development of ocean energy systems by compiling and disseminating information about the
potential environmental effects of marine energy technologies and to identify methods of
monitoring for these effects.”43
Results of the Annex IV project are available in a publicly
available searchable online database of environmental effects information called Tethys.
Tethys is described as “a knowledge management system that gathers, organizes, and provides
access to information on the environmental effects of marine and hydrokinetic (MHK) and
offshore wind energy environment…Tethys, named after the mythical Green titaness of the seas,
supports programs at the U.S. Department of Energy’s Wind and Water Power Technologies
Office.”44
Tethys also serves as a clearinghouse for information and metadata associated with the
Annex IV project; data contained with the database has been made developed and made
42
http://www1.eere.energy.gov/water/pdfs/annex_iv_report.pdf
43
Ibid.
44
http://tethys.pnnl.gov/

21
accessible through a dispersed community of experts interested in the potential environmental
effects of marine energy developments.45
Environmental impacts that may prove of concern to marine energy development may include the
following46
:
 Risk of marine mammal and fish collisions with tidal turbine blades
 Impacts of underwater noise and electromagnetic fields emitted due to operation of
marine energy devices
 Presence of marine energy projects may influence behavior of marine mammals, fish and
seabirds
 Sediment transport and water quality may be impacted due to alteration of water currents
The Tethys website features a page47
listing a variety of risk analyses and models that may be
used to describe and assess the impacts of MHK technology on both marine and freshwater
ecosystems. As it is beyond the scope of this memo to extensively describe these models as well
as their strengths and weaknesses an abbreviated listing of the resources specifically relevant to
ocean energy technology is provided below. The listing includes the name of the resource and a
brief description of it.
 Environmental Risk Evaluation System (ERES)48
ERES applies a risk assessment process that consists of four steps. The first step is case
selection in which potential offshore renewable energy projects are selected for analysis.
In step two selected cases undergo consequence analysis. Potential stressor-receptor
interactions are enumerated and then ranked using a set of biophysical risk factors. The
third step consists of refined characterization of priority risks originally identified
through the consequence analysis. The final step features input and review from
stakeholders such that a rigorous evaluation of risk may be made.
 Modeling MHK Energy Removal with Hydrodynamic Models49
Hydrodynamic models may be used to do the following:
o Characterize practically available energy resources in marine environments
o Provide guidance of device design and siting
o Understand and predict potential physical and ecological impacts resulting from
energy removal
 Oregon Wave Energy Trust (OWET) – Cumulative Effects Analysis Framework50
This framework is a GIS tool designed to assess development scenarios and their
associated potential impacts and benefits.
 Assessments of Marine Receptors and Potential Impacts in Scottish Waters51
Refer to the section featuring details on Aquatera for information on this assessment.
45
Ibid.
46
Ibid.
47
http://tethys.pnnl.gov/risk-analyses-and-models
48
http://tethys.pnnl.gov/Environmental-Risk-Evaluation-System-ERES
49
http://tethys.pnnl.gov/modeling-mhk-energy-removal-hydrodynamic-models
50
http://tethys.pnnl.gov/OWET
51
http://tethys.pnnl.gov/assessments-marine-receptors-and-potential-impacts-scottish-waters

22
 Marine Scotland Approach to Risk Management52
This report by Marine Scotland and the Scottish Government provides policy guidance to
regulators and developers in the review of wave and tidal energy proposals.
 Sandia National Laboratory – Environmental Fluid Dynamics Code (SNL-EFDC)53
The SNL-EFDC provides researchers assistance in the simulation of the movement of
water and sediment. Such hydrodynamic model codes may be used to model the potential
effects of turbines and wave energy converters in a variety of settings including rivers,
tidal channels and ocean currents.
 Tidal Turbine Blade Strike Analysis for Southern Resident Killer Whale54
Ocean energy technology presents a potential risk to aquatic species. The DOE sought
out the research expertise of the Pacific Northwest National Laboratory and Sandia
National Laboratories to enhance understanding of the potential risk and damage that
could be caused to a Southern Resident Killer Whale (SRKW) due to operation of an
OpenHydro turbine. Risk was assessed using the creation of models of both the
OpenHydro turbine blades and its motion as well as a SRKW. The resulting modeling
activity combined with review of data on the biomechanics of SRKW tissues produced
the following conclusion: “the improbable encounter of a SRKW with an OpenHydro blade in
Admiralty Inlet is most likely to result in recoverable injury, such as bruising.”
 SNL-SWAN: Simulation Waves Nearshore55
SNL-SWAN is a project that has received funding support from the DOE Wind and
Water Power Technologies Office. It is an open source wave energy converter array
simulation tool.

THE UNITED STATES OCEAN POWER INDUSTRY
OVERVIEW
A recent Market Overview provided by the Ocean Renewable Energy Coalition (OREC)56
describes the marine and hydrokinetic (MHK) renewable energy sector as “an emerging industry
with an ever-changing outlook, and significant challenges and advantages coming from existing
industries, international competition and cooperation, and competition for limited resources.”
Also noteworthy is the fact that despite significant development of installed capacity in Scotland57
the global market is described as lacking a single country that currently possesses substantial
market share.58
One example of U.S. activity at the international level is its participation in the International
Energy Agency’s Ocean Energy Systems (OES) initiative.59
A 2012 OES forecast predicts that by
the year 2030 “ocean energy will have created 160,000 direct jobs and saved 5.2 billion tones of
52
http://tethys.pnnl.gov/publications/survey-deploy-and-monitor-licensing-policy-guidance
53
http://tethys.pnnl.gov/sandia-national-laboratory-environmental-fluid-dynamics-code-efdc
54
http://tethys.pnnl.gov/southern-resident-killer-whale-strike-analysis
55
http://tethys.pnnl.gov/snl-swan-simulating-waves-nearshore
56
http://www.acore.org/files/pdfs/ACORE_Outlook_for_RE_2014.pdf (p. 37)
57
Ibid., p. 38.
58
Ibid., p.37.
59
Ibid.

23
CO2 emissions.”60
OREC predicts growth in the United States MHK sector such that by 2030 15
GW of installed capacity will support the creation of approximately 36,000 direct and indirect
jobs.61
Prospects for future federal funding of MHK research appear mixed; the Department of
Energy Fiscal Year 2015 submission (released in March, 2014) sought to cut MHK research and
development by 25%.62
A technical report published by the Electric Power Research Institute in 2011 estimates the total
available wave energy resource along the U.S. continental shelf edge to be 2,640 TWh/yr. When
disaggregated by geographic region estimates of energy potential are as follows: West Coast: 590
TWh/yr; East Coast: 240 TWh/yr; Gulf of Mexico: 80 TWh/yr; Alaska: 1570 TWh/yr; Hawaii:
130 TWh/yr; Puerto Rico: 30 TWh/yr. The total recoverable resource is estimated to be 1,170
TWh/yr.63
The next section provides an overview of significant ocean energy technology sector
developments within both the public and private sectors.
PUBLIC SECTOR
Federal Agencies
The Bureau of Ocean Energy Management (BOEM) is a federal government agency that plays a
role significant to the development of ocean energy technologies and related projects in the
United States. BOEM is an agency of the U.S. Department of the Interior; it was launched on
October 1, 2011 as but one end result of an eighteen-month reorganization process64
. It is one of
three agencies created through the dissolution of the Minerals Management Service (MMS). This
reorganization process took place in response to the Deepwater Horizon oil spill. More details on
this event appear below.
The mission of BOEM is to manage the development of the Nation’s offshore energy resources in
an environmentally and economically responsible way. Functions of BOEM include65
:
 Oversight of assessments of oil, gas and other mineral resource potential conducted by
the Office of Strategic Resources Five Year Outer Continental Shelf Oil and Natural Gas
Leasing Program
 Processing of oil and gas lease sales
 Development of offshore renewable energy development in federal waters
 Conduct environmental reviews and studies to inform policy decisions related to energy
leasing, development and management of energy and marine mineral resources
 Public engagement using a variety of methods including task force and small community
meetings, solicitation of public input in response to environmental reviews and an online
newsletter
 Provision of business solutions through programs such as the Small Business Program66
60
Ibid.
61
Ibid., p.38.
62
http://energy.gov/sites/prod/files/2014/03/f8/eere_fy15_budget_breakout.pdf
63
http://www1.eere.energy.gov/water/pdfs/mappingandassessment.pdf
64
http://www.boem.gov/Regulatory-Reform/
65
http://www.boem.gov/About-BOEM/
66
http://www.boem.gov/Doing-Business-with-BOEM/

24
As previously noted the Deepwater Horizon oil spill was the precipitating disaster that led to the
creation of the BOEM. The oil spill resulted from an explosion on the Deepwater Horizon
Macondo oil well drilling platform on April 20, 2010.67
The oil spill ultimately became the largest
marine oil spill in United States history.68
The NOAA Office of Response and Restoration served
as the lead agency in the emergency response to the spill.69
According to a 2014 article published
by the LSU Journal of Energy Law and Resources the three primary problems regarding the
MMS’s regulation of the offshore drilling industry were inadequate funding, inadequate penalties
for serious violations and agency capture.70
Though the technologies associated with the ocean energy industry may carry significantly lower
risk of harm to the environment as compared to the offshore drilling industry a brief overview of
the factors which contributed to the Deepwater Horizon spill is nonetheless instructive. As the
evaluation of risks associated with ocean energy technologies continues in the future it would be
valuable to monitor the ongoing performance of BOEM to minimize the risk of weaknesses
similar to those noted to have plagued the former MMS.
As noted above BOEM operates an offshore Renewable Energy Program. In 2009 regulations
necessary to the Outer Continental Shelf Renewable Energy Program were finalized. As noted on
the BOEM website these regulations “provide a framework for issuing leases, easements and
rights-of-way for OCS activities that support production and transmission of energy from sources
other than oil and natural gas.”71
A summary document containing guidelines specific to the
regulation of marine and hydrokinetic energy projects was released in July, 2012.72
In addition to the Bureau of Ocean Energy Management, the United States Department of Energy
(DOE) supports the development of the ocean energy technology sector in a number of ways.
The mission of the DOE Water Power Program is to “research, test, evaluate, develop and
demonstrate innovative technologies capable of generating renewable, environmentally
responsible and cost-effective electricity from water resources” and has set a national MHK cost
goal of 12-15 cents per kilowatt hour by 2030.73
DOE also supports testing infrastructure. Such infrastructure is necessary to allow for the testing
of prototype technologies. Sea test sites include the following74
:
 U.S. Navy WETS - The DOE has partnered with the Department of Defense (DOD) at
the United States Navy Wave Energy Test Site (WETS). Given the energy needs of the
U.S. Navy and its operations within the marine environment it is only natural to explore
the value of marine energy technologies as a means of shifting the energy portfolio of US
DOD operations in the direction of more renewable energy sources. WETS is located in
Kaneohe Bay in Hawaii. The site is set to expand to allow for year-round testing of wave
energy conversion devices.75
67
http://response.restoration.noaa.gov/deepwater-horizon-oil-spill
68
Ibid.
69
Ibid.
70
http://jelr.law.lsu.edu/2014/11/19/changing-direction-how-regulatory-agencies-have-responded-to-the-
deepwater-horizon-oil-spill/
71
http://www.boem.gov/Renewable-Energy/
72
http://www.boem.gov/BOEM-Newsroom/Press-Releases/2012/BOEM-FERC-staff-guidelines-pdf.aspx
73
http://report2014.ocean-energy-systems.org/
74
Ibid.
75
http://www.sea-technology.com/features/2014/0114/1.php

25
 Pacific Marine Energy Center – South Energy Test Site (PMEC-SETS) and the
California Wave Energy Test Center (CalWave) – Water Power Program funding will
support a research collaboration between the Northwest National Marine Renewable
Energy Center (NNMREC) and California Polytechnic State University. Research will
focus on the development of designs for a wave and tidal test facility that will later be
used to inform the process of planning a domestic wave energy test facility.
 Pacific Marine Energy Center (PMEC) – PMEC is the testing facility arm of
NNMREC. PMEC supports two operational test sites for the testing of wave energy.
 Southeast National Marine Renewable Energy Center (SNMREC) – SNMREC
focuses on research in open-ocean current systems.
 Hawaii National Marine Renewable Energy Center (HINMREC) – HINMREC is
dedicated to facilitating the development and commercialization of WEC devices.
Starting in 2015, the center will support the U.S. Navy in testing WEC devices at the U.S.
Navy WETS facility. HINMREC will also assist in the measurement of acoustic and
electromagnetic fields and thereby provide data relevant to the creation of environmental
impact assessments.
DOE national laboratories have also contributed to the U.S. wave energy industry through the
development of a methodology for MHK technology. This project “established baseline cost of
energy for six device designs, called Reference Models, by designing, predicting performance
and creating publically available cost models.”76
DOE national laboratories include Sandia
National Laboratories, the National Renewable Energy Laboratory, the Pacific Northwest
National Laboratory and the Oak Ridge National Laboratory. Information regarding these
laboratories’ efforts specific to MHK technologies can be found in the previously referenced
2014 Ocean Energy Systems annual report.
Legislative Environment
A number of pieces of recently proposed legislation that could benefit the ocean energy
technology industry are profiled below77
. The current status of this legislation is not noted.
 Marine and Hydrokinetic Renewable Energy Act of 2013 – Promotes research,
development and demonstration of MHK renewable energy technologies.
 Renewable Electricity Standard Act of 2013, American Renewable Energy and
Efficiency Act – Creates a renewable electricity standard that would apply to all
renewable energy sources.
 Climate Protection Act of 2013 – Enable the Environmental Protection Agency to create
a Sustainable Technologies Finance Program designed to reduce costs for renewable
energy programs.
76
Ibid.
77
http://report2014.ocean-energy-systems.org/

26
 Prioritizing Energy Efficient Renewables Act of 2013 – Permanently extends the
Renewable Energy Production Tax Credit for wind, geothermal, hydro and marine power.
 Advancing Offshore Wind Production Act – Sets a thirty-day timeline for the Secretary
of the Interior to act of permits for all weather testing and monitoring projects occurring
in the United States Outer Continental Shelf.
PRIVATE SECTOR
The DOE also supports the development of wave energy technology in the private sector. In
August, 2013 DOE announced it would provide $13.5 million in funding in support of eight
system performance advancement projects.78
A brief summary of these projects appears below.
More details on the projects can be found at the U.S. Department of Energy Energy Efficiency
and Renewable Energy Water Power Program webpage.79
 Dehlsen Associates, LLC. Focus: Develop advanced controls software for multi-pod
Centipod wave device. DOE funding: $500K
 Ocean Renewable Power Company, LLC. Focus: Investigate, analyze and model a
control system for TidGen system. DOE funding: $1,930K
 Resolute Marine Energy, Inc. Focus: Develop feedback control algorithm for wave
energy converter. DOE funding: $1,000K
 ABB, Inc. Focus: Build a compact direct-drive generator. DOE funding: $2,000K
 Columbia Power Technologies. Focus: Demonstrate the use of a high performance
power take-off module for the company’s StingRAY wave energy converter. DOE
funding: $3,000K
 Ocean Renewable Power Company, LLC. Focus: Develop and test concepts for an
advanced power take-off system. DOE funding: $3,000K
 Ocean Energy USA, LLC. Focus: Develop and conduct wave-tank testing for deep-
water wave energy device. DOE funding: $1,000K
 Ocean Power Technologies, Inc. Focus: Develop cylindrical body of the company’s
PowerBuoy wave energy converter. DOE funding: $1,000K
Additional noteworthy ocean energy companies and activities operating in the private sector
include Ocean Power Technologies, Northwest Energy Innovations and Oregon Wave Energy
Trust.
Ocean Power Technologies (OPT) is known for its proprietary PowerBuoy technology. As noted
on the company website the PowerBuoy is designed to deliver the following80
:
78
Ibid.
79
http://www1.eere.energy.gov/water//news_detail.html?news_id=19575
80
http://www.oceanpowertechnologies.com/the-company/

27
 Reduced operational costs by eliminating frequent maintenance visits to service
traditional energy sources.
 Real time data with enhance density enables by the availability of increased electrical
power.
 Greater availability of reliable power.
 Proactive control and fault analysis of equipment through real time remote desktop user
control and monitoring.
OPT’s PowerBuoy technology is meant to serve the offshore power needs of the defense/security,
oil and gas, offshore wind and ocean observing markets.81
Northwest Energy Innovations, LLC (NWEI) is based in Portland, Oregon and is known for its
Azura wave power generation technology. The technology that preceded Azura was known as
Wave Energy Technology New Zealand (WET-NZ) and was developed through a collaboration
between NWEI, Callaghan Innovation and Energy Hydraulics Limited.82
The Azura technology is
unique due to its ability to pull energy from both the vertical and horizontal motions of waves.83
NWEI is currently in the news as it very recently (June, 2015) successfully deployed the Azura
wave energy device for a 12 month period of testing at the U.S. Navy’s Wave Energy Test Site in
Hawaii.84
Deployment and testing of the device is made possible through a collaboration between
the DOE, the U.S. Navy and the University of Hawaii.85
NWEI CEO Steve Kopf described the
significant of the deployment by noting that Azura will be “the first grid connected wave energy
device in the U.S. that will be tested and validated by an independent party.”86

Oregon Wave Energy Trust (OWET) is a nonprofit, public-private partnership dedicated to the
responsible development of ocean energy. The trust works primarily through stakeholder
engagement, supporting research and development, public outreach and policy work.87
The
natural resource, infrastructure and policy environment of the state of Oregon predisposes the
state to become North America’s leader in ocean energy.88
81
Ibid.
82
http://azurawave.com/about/partners/
83
http://azurawave.com/about/
84
http://azurawave.com/northwest-energy-innovations-launches-wave-energy-device-in-hawaii/
85
Ibid.
86
Ibid.
87
http://oregonwave.org/about/
88
Ibid.

28
Additional Resources

The economy of the state of California rivals of exceeds that of many nation states in terms of its
size and the diversity of its economic sectors and its associated innovation and output. It is thus
valuable to follow developments within the state’s ocean policy and related technologies sector.
The California Ocean Energy Commission serves as the state’s primary energy policy and
planning agency. Developments noted on the Commission website may prove of interest to the
ocean energy technology industry.
http://www.energy.ca.gov/oceanenergy/
The framework of analysis used throughout this memo did not employ life cycle assessment (LCA). This
assessment methodology could prove valuable if a more comprehensive assessment of the impacts of a
technology is desired. As noted on the NREL website “life cycle assessment can help determine
environmental burdens from ‘cradle to grave’ and facilitate comparisons of energy technologies.”
http://www.nrel.gov/analysis/sustain_lca_about.html
Described by the New York Times as “one of the nation’s most powerful environmental groups” the
NRDC is dedicated to safeguarding the Earth’s people, plants and animals as well as the natural systems of
the planet. The NRDC website includes a renewable energy section that profiles a variety of renewable
energies including wave and tidal energy.
http://www.nrdc.org/energy/renewables/offshore.asp
Traditional knowledge, also referred to as indigenous knowledge or indigenous ecological knowledge, has
frequently not been considered in the operations of federal agencies whose missions include the
management of natural resources. This reality has recently begun to change. For example, in 1996 the
Alaska OCS Region of the Bureau of Ocean Energy Management began a series of roundtable discussions
on traditional knowledge. This new approach was made in response to the fact that “a consistent comment
the bureau had received in outreach and public-participation meetings was that traditional knowledge from
Native observations of the natural environment was not incorporated into agency decisions.”
Given the emergent nature of the ocean energy technology industry it seems likely engagement with native
populations regarding marine environment knowledge they possess that may prove relevant to the
successful emergence of the industry is still minimal.
http://www.boem.gov/About-BOEM/BOEM-Regions/Alaska-Region/Traditional-Knowledge.aspx

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