3 Ocean Power actions to hydro-power your portfolio

The ocean is incredibly powerful. Have you ever been caught up in the current? It can make even the strongest swimmers look like a floating log. Companies are now starting to use the power of the oceans to generate significant amounts of energy. Investing in ocean energy stocks can help investors gain exposure to this innovative renewable energy technology.

Electricity produced by the ocean has endless potential for businesses that can harness it. Recently the US Energy Information Administration noted that the potential wave energy of the US coast could reach 2.64 trillion kWh. In other words, 64% of the total US electricity produced in 2019.

With the ability to generate so much energy, companies are rushing to develop technology to capture it. The question is… what store of ocean energy will win out?

Let’s look at the major ocean energy stores that are currently working on using ocean energy for everyone.

1. Ocean Power Technologies (NYSE: OPTT)

  • Market capitalization: 109.1 M
  • Share price: $ 2.08
  • 2020 sales: $ 1.2 million

First on our list, Ocean Power Technologies is a leader in wave power generation. Their technology is capable of converting the energy of the oceans into usable green electricity. Renewable energy company made a name for itself with its advanced PowerBuoy system.

The PowerBuoy system uses the latest technology to generate, capture, store and utilize the natural energy of ocean waves. And, the latest model, the PB3 buoy, uses wave energy to generate constant power to keep the device running.

The technology can then send information back to remote locations, giving the company updates on the status of the device. Initially it was designed for the US Navy to provide power and proved its durability during Hurricane Irene.

Ocean energy stock is causing a stir with the company’s latest acquisition of 3Dent Technology. This decision gives Ocean Power Technologies access to advanced offshore engineering capabilities. The buyout also gave OPTT stock a boost, climbing more than 100% on the year in February 2021.

Despite the positive news, Ocean Power Technologies shares have since plummeted, falling more than 20% on the year.

In 2020, the renewable energy company generated revenue of $ 1.2 million, down 28% from the previous year. Management noted that the drop in revenue is due to higher costs and the need to manage projects due to Covid-19.

OPTT investors have a bright future ahead of them. Ocean Power Technologies is gaining ground in the renewable energy sector. Latest business acquisition should help them develop new customer base and increase revenue.

2. Eco Wave Power Ltd. (NASDAQ: WAVE)

  • Market capitalization: 46.6 M
  • Share price: $ 8.33
  • 2020 turnover: N / A

Eco Wave Power also has a mission to harness energy from the ocean and convert it into green electricity. The Swedish Renewable Energy Company is a relatively new company founded in Israel in 2011.

Eco Wave Power already has several patents for its technology and has several other projects in the works. The innovative technology uses a simple design mechanism that attaches to any artificial structure. When the waves crash against the “floats” they stay afloat, lifting the levers in a sort of “pumping” action.

This action is what generates clean energy. This process is cost effective and allows the company to install the devices in convenient locations. As the floats are attached to the structures, this allows for easy maintenance if required.

The technology is operational through a Power Purchase Agreement (PPA). Essentially, the device is connected to the grid, which allows them to generate power and then distribute it to buyers.

Although the company went public in July, the latest earnings release shows the company is slowly starting to generate revenue. In the first half of 2021, Eco Wave Power generated $ 31,000 in revenue through a feasibility study.

The renewable energy company has several exciting developments that investors should look forward to soon. At the port of Jaffa, Israel, Eco Wave Power has completed the concrete reinforcement, which allows it to install floats. Eco Wave has also just created a subsidiary in Portugal. This will allow the company to develop and implement renewable energy technology in the country.

3. Carnegie Clean Energy Ltd (OTCMKTS: CWGYF)

  • Market capitalization: 33 M
  • Share price: $ 0.0019
  • 2020 income: $ 60,955

Next on our list of ocean energy stocks is Carnegie Clean Energy. Previously known as Carnegie Wave Energy, the Australian company changed its name to Carnegie Clean Energy in 2016. The change accentuates the addition of other forms of renewable energy that the company produces and sells. In addition to marine power, Carnegie Clean Energy sells solar power and the battery systems that go with it..

Carnegie uses a unique technology, named after the Greek goddess of the sea, CETO. The technology remains fully submerged under the ocean and, using a system of buoys, it follows the waves. The back-and-forth motion creates a power take-off (PTO) system, converting the motion into usable green energy.

The ocean energy company also has patented technology to protect the design from copying. Carnegie’s technology is unique in that it remains fully submerged. You cannot see the device when it is fully installed. Submerged technology can be beneficial because you can install it just about anywhere. But, to ensure maintenance, you will still need to access the devices.

The company is not yet profitable because its technology is still under development and deployment. In its fourth quarter update, the company noted that it was making “good progress towards cost reduction and performance targets to support the CETO business path.”

Diversify your portfolio with Ocean Power stocks

Although these ocean energy stocks are smaller businesses, they are making tremendous strides in harnessing energy from the ocean. The ocean is in constant motion due to the gravitational pull of the sun / moon. This means that the potential to harness its energy is limitless.

Waves can be created by a) wind or b) the gravitational pull of the sun / moon. When a wave develops, it transmits energy. Ocean energy stocks are developing innovative technology to draw this energy, store it and distribute it if necessary.

It is clear that clean energy in the United States is booming. Solar, wind and renewable energies in general is my “best investment thesis for the next decade”. It is growing rapidly, while other investments in energy, oil, gas and nuclear are going nowhere fast. – David Fessler, Oxford Club Engineering Strategist

Renewable energy companies are changing the world around us as we know it. They provide a sustainable means of producing energy that can be used for many generations to come. So the more renewable energy we can use, the less we will have to depend on fossil fuels.

Finally, you don’t want to miss out on the latest emerging technologies. Besides ocean energy stocks, there are many other exciting developments emerging every day! And there’s no better place to stay up to date than our free Profit trends e-letter. You will gain valuable insight into renewables, high growth technologies, and investing in cannabis. Join today!


About Pete Johnson

Pete Johnson is a seasoned financial writer and content creator specializing in equity and derivatives research. He has over ten years of personal investment experience. Rummaging through 10-K forms and finding hidden treasures is his favorite pastime. When Pete isn’t doing stock research or writing, you may find him enjoying the outdoors or sweating while exercising.

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