SDE to build $100m worth wave energy projects

SDE Energy and Desalination has reportedly signed a 25-year agreement with an African country to build wave energy projects with a total capacity of 100 megawatts. The name of the country hasn't been disclosed.

SDE head Shmuel Ovadia told media that the $100 million facility is expected to bring in $1 billion worth of revenue over the contract's 25-year term.

The company's method consists of using sea wave motion to generate hydraulic pressure, which is then transformed into electricity. The system takes advantage of the wave's speed, height, depth, rise and fall, and the flow beneath the approaching wave, thus producing energy. A full-scale model was operated in Israel and produced 40ekW for almost one year.

"Our system is built on one side of wave gatherers, which can also serve as breakers. It is composed of a system of channels of hydraulic oil, whereby the rise of the pistons creates pressure on the hydraulic oil. The hydraulic oil is accumulated in a pressurized container and is then directed toward a hydraulic motor. This energy turns an electrical generator, which produces electricity," said Ovadia.

SDE is in talks with institutional investors to provide financial guarantees for the ocean wave-driven power stations.

Currently, the company holds Letters of Intent and orders from state leaders and electric companies in an approximate amount of US$3 billion. In order to implement them, the company is open for proposals related to investment, either through a sale of its shares or royalties from future revenues.

The Israeli government has granted SDE a concession without tender to produce and sell 50MW of electricity for 20 years.