Leverages its Pioneering Technology to Advance Projects in Israel, Los Angeles, Portugal and Spain
STOCKHOLM, May 31, 2022 /PRNewswire/ — Eco Wave Power Global AB (publ) (Nasdaq: WAVE) (Nasdaq First North: ECOWVE) («Eco Wave Power» or the «Company»), a leading, publicly traded onshore wave energy technology company that developed a patented, smart and cost-efficient technology for turning ocean and sea waves into green electricity, today announced its financial results as of and for the three months ended March 31, 2022.
«With our technology proven through real conditions deployments in Gibraltar and Israel, we are now aiming to progress towards larger scale projects in Portugal and Spain and new and ongoing projects in Jaffa Port, Israel and the Port of Los Angeles in the United States» commented Inna Braverman, Founder and Chief Executive Officer of Eco Wave Power. «The innovative nature of our technology has enabled us to build robust relationships with visionaries, politicians, and innovators around the world, which we believe has coalesced into meaningful near-term opportunities in Europe and the United States that we are now advancing. The projects in our pipeline in these and other regions will serve as the foundation for the next phase in our development, scaling our deployments to create a clean, renewable, megawatt-scale power source.»
Ms. Braverman continued, «In the next few months, we will connect our EWP-EDF One Project to Israel’s power grid, establishing the first wave-powered facility in Israel’s history. Also, our planned projects in Europe are planned to represent our largest and most significant deployments to date, and we are excited about our opportunities with the Port of Leixões (APDL) in Porto, Portugal and Port Adriano, in Mallorca, Spain. Simultaneously, we have made important steps to enter new markets, particularly in the United States through our collaboration with AltaSea at the Port of Los Angeles («AltaSea») and our work with lawmakers and leaders in Los Angeles and New Jersey. We continue to expect 2022 to be a very significant year in our development plan, and we are increasingly confident that we are well-positioned to achieve our ambitious goals.»
«Our progress comes as governments around the world, especially in the United States and Europe, are looking for additional renewable energy sources and looking to reduce reliance on fossil fuels, especially those from Russia,» added Ms. Braverman. «Russia currently supplies 40% of the European Union’s (EU) natural gas and 27% of its imported oil. The war and its associated sanctions have resulted in significant increases in EU electricity prices, and the EU has announced its plan to invest up to €300 billion ($316 billion) by 2030 to make the EU independent of Russian energy imports. The Biden Administration has also proposed aggressive clean energy targets and individual states are following suit. I believe that wave energy represents an important, base-load source to make these efforts a reality.»
Operational Summary During the First Quarter of 2022
EWP EDF One Project – Eco Wave Power finalized the production of all floaters and supporting structures for the grid-connected EWP-EDF One project at the Port of Jaffa in Israel, and finalized the installation of eight floater mechanisms to the Jaffa Port Sea wall. On January 22, 2022, Eco Wave Power also officially completed the grid connection route works for the EWP EDF One Project, pursuant to the engineering coordination permit from the Municipality of Tel-Aviv Jaffa for the deployment of the grid connection works of the EWP-EDF One wave energy project.
EWP–OPT Collaboration – On January 13, 2022, Eco Wave Power and Ocean Power Technologies, Inc. («OPT») announced that they are working to utilize their complementary technologies and skills to accelerate wave energy projects pursuant to an agreement previously signed. The companies will work together on several fronts, including knowledge sharing, joint grant submissions, and collaborative assistance in entry to new markets. In addition, joint solutions can be developed utilizing each company’s respective offshore and onshore technologies and leveraging OPT’s offshore engineering and newly acquired robotics capabilities in Eco Wave Power’s applicable projects.
Penetration of the U.S. Market – On January 19, 2022, Eco Wave Power announced a newly signed collaboration agreement with AltaSea at the Port of Los Angeles. As part of this agreement, Eco Wave Power announced it intends to relocate the energy conversion unit from Gibraltar to AltaSea’s premises at the Port of Los Angeles.
On January 20, 2022, during Eco Wave Power’s bell ringing ceremony at the Nasdaq Capital Market, New Jersey State Assemblyman Robert J. Karabinchak announced his intention to introduce new legislation initiative to include wave energy in New Jersey’s Energy Master Plan and to help New Jersey become the first U.S. state or territory to have a commercial wave energy proof of concept. On March 17, 2022, Inna Braverman testified before a New Jersey State Legislature hearing about the advantages of including wave energy in New Jersey’s Energy Plan.
On February 25, 2022, Eco Wave Power announced it plans to apply for delisting from Nasdaq First North Growth Market (Sweden) («Nasdaq First North»), as it shifts attention to its recent listing on the Nasdaq Capital Market in the United States. The formal application for delisting was submitted to the Nasdaq First North on May 25, 2022. On May 30, 2022, the Nasdaq First North accepted Eco Wave Power’s application to delist its common shares. As a result, the last day of trading for the Company’s common shares on Nasdaq First North will be June 13, 2022.
Eco Wave Power and its innovative technology was featured in The Wall Street Journal article published on March 9, 2022, titled «The Future of Everything,» as one of the «Next Bets for Renewable Energy.» (see article here)
Other Recent Development
On April 11, 2022, Eco Wave Power entered into an official agreement with Port Adriano on the island of Mallorca, Spain, for the potential construction of a wave energy power plant of up to 2 megawatts. The agreement expands Eco Wave Power’s presence in Europe and will help Spain to achieve its aggressive goals for renewable power, leveraging its significant coastline capacity.
Financial Results as of and for the three months ended March 31, 2022
Revenues of SEK 0.24 million compared to SEK 0.26 in the same period in 2021 (USD 26 thousand compared to USD 31 thousand, respectively) from feasibility study services in Asia. The Company is building out a pipeline of ancillary technology services that it may provide to its customers and other parties, such as other companies and research institutions, in addition to the Company’s wave energy conversion (WEC) technology. These services currently include feasibility studies for potential clients of WEC technology.
Operating loss increased to SEK -8.4 million compared to SEK -4.5 million in the same period in 2021 (USD -0.89 million compared to USD -0.53 million, respectively). Research and development expenses increased to SEK 1.8 million compared to SEK 1.3 million in the same period in 2021 (USD 0.19 million compared to USD 0.16 million, respectively), sales and marketing expenses amounted to SEK 1.5 million compared to SEK 0.8 million in the same period in 2021 (USD 0.16 million compared to USD 0.09 million, respectively). General and administrative expenses amounted to SEK 5.0 million compared to SEK 2.4 million in the same period in 2021 (USD 0.54 million compared to USD 0.28 million, respectively).
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