Gibraltar wave power plant (for illustration purposes); Source: Eco Wave Power

Eco Wave Power’s ‘significant milestones’ keep optimism for future energy project opportunities alive

Eco Wave Power is among the companies that felt the impact of the unpredictability surrounding the economy in 2023. However, the Swedish-Israeli wave energy player still managed to boost its revenues by 1076% and cut its net loss by 36% last year compared to 2022. As a result, the company ended 2023 with $8.4 million in cash and deposits but its net financial income dropped from $706,000 in 2022 to $547,000.

Gibraltar wave power plant (for illustration purposes); Source: Eco Wave Power

With the economic ecosystem in turmoil, while climate action dragged its feet, many renewable companies faced financial woes in 2023. Amidst economic uncertainty, Eco Wave Power saw substantial growth in 2023, with the revenue for the fiscal year ending December 31, 2023, rising by $280,000 and marking a 1076% increase to $306,000 compared to $26,000 in 2022. This increase primarily stemmed from feasibility study services rendered in the U.S., Israel, and Morocco.

The company’s operating expenses totaled $2.7 million, representing a 25% decrease from 2022, while the research and development expenses decreased by $379,000, or 42%, to $519,000 compared to $898,000 in 2022. Despite the reduction in R&D expenses in 2023, Eco Wave Power said that an increase is anticipated due to the completion of the EWP-EDF One project, the initiation of the first U.S. project in the Port of Los Angeles, and the start of the first commercial-scale project in Portugal.

Eco Wave Power understood that we must adapt and learn how to navigate through the turbulence, and have learned over the past year that adaptability is a cornerstone of success in business, especially in today’s rapidly changing economic landscape. Our adaptation process worked, and we were able to demonstrate our resilience by increasing our revenues by 1,076%,” said Inna Braverman, CEO of Eco Wave Power. 

According to the Swedish-Israeli firm, sales and marketing expenses fell by $86,000, or 18%, to $375,000 from $461,000 in 2022. This decline was mainly due to reduced spending on sales and marketing activities and a drop in payroll expenses. Eco Wave Power said its general and administrative expenses declined by $495,000, or 22%, to more than $1.76 million from almost $2.26 million in 2022, primarily driven by decreases in various areas including director and officer insurance premiums, legal expenses, investor relations consultant costs, and other services.

The firm’s other income of $17,000 came primarily from management fees in a joint venture while the share of net loss from the EWP EDF One Project accounted for using the equity method was $19,000. The wave energy player’s operating loss decreased by 33%, amounting to $2.4 million compared to $3.6 million in 2022. The company said its net loss was reduced by 36% to nearly $1.87 million compared to $2.9 million in 2022. 

As a result, Eco Wave Power ended the year with $8.4 million, compared to the first quarter which ended with $4.7 million. The company had $4.3 million in cash and cash equivalents and $4.1 million in short-term bank deposits, a significant improvement from the previous year’s $5.3 million and $5 million, as of December 31, 2022.

Braverman emphasized: “Although the company’s burn rate of cash has decreased substantially, we were able to achieve significant milestones, such as the grid connection of our Israeli project, an investment agreement with a major energy company for our first U.S. project at the Port of Los Angeles and the securing of the final license for our first commercial-scale project in Portugal, that is expected to be finalized within a period of two years.

We have also reinforced our financial position by providing feasibility studies and project planning engineering services, in addition to applying for and securing multiple grants.”

Steps taken to progress key projects

One of the milestones that Eco Wave Power tucked under its belt in 2023 took place in Israel, where the EWP-EDF One Project in the Port of Jaffa was linked to the national electrical grid. This marked the first time wave energy was connected to the country’s National Electrical Grid through a power purchase agreement. Currently, the project contributes electricity generated from wave power to the Israeli electric grid. 

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Based on Eco Wave Power’s update, project engineering plans have been submitted to the port authorities, and the final required licenses have been formally requested from both the Port of Los Angeles and the U.S. Army Corps of Engineers. Once the licenses are obtained, the company anticipates a brief implementation period of approximately six months for its first U.S. project. 

The firm’s optimism for future wave energy market growth in America is supported by the latest piece of legislation in the U.S., known as the California Senate Bill 605 (SB 605), approved by Gavin Newsom, California’s Governor. The company believes that this legislation emphasizes the potential of wave energy to provide economic and environmental benefits, thus, it is projected to support the advancement of the Swedish-Israeli player’s project while encouraging the development of other potential initiatives nationwide.

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“We strongly believe that with the recovery in the economic landscape, and other positive initiatives, such as the Biden administration’s sweeping Inflation Reduction Act (which since its passage, announced more that 270 new clean energy projects, with 132 billion USD in private investments), there will be a significant opportunity for investors in the renewable energy market,” added Braverman.

“We believe that renewable energy, and wave energy in particular, is a significant part of the world’s future, and offers a significant opportunity for decarbonization, combined with profitability. In fact, Peter Krull, director of sustainable investments at Earth Equity Advisors, that manages a portfolio that focuses on stocks in industries from alternative energy to battery technology to green transportation sees the current rut in clean energy stocks as a buying opportunity for investors.”

Furthermore, Eco Wave Power secured the final approval in Portugal for the commencement of construction works on the first commercial-size project in Porto from the APDL Port Authority. Subsequently, a performance bond was issued to APDL to affirm the dedication to completing the construction of the first commercial wave energy project within a two-year timeframe. 

During 2023, Eco Wave Power conducted several feasibility studies to explore new markets for wave energy implementation. These studies included a U.S. feasibility study for Shell MRE, an offshore gas drilling platform feasibility study for Chevron Corporation, a feasibility study for a commercial project in Morocco commissioned by Jesa Group, and a feasibility study and detailed project planning for a commercial-scale project in Greece conducted for Rogan Associates.

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“I am very pleased to share that we believe the company is financially stable and resilient, and has enough funding, expertise, and support from strategic partners to procced with the execution of its upcoming projects in the Port of Los Angeles, in Portugal and in other places. I believe in Eco Wave Power’s team, in Eco Wave Power’s technology, and in the global ambition to fight climate change,” concluded Braverman.

Recently, Eco Wave Power confirmed the award of a £1.5 million grant (almost $1.9 million), secured as a part of a consortium led by UK-based Toshiba and Aquatera, to design a pilot microgrid project for a remote island in Thailand. The grant is a part of round ten of Innovative UK’s Energy Catalyst program.

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