Mundo: Eco Wave Power Presents Continued Operational Progress and Reports First Half 2022 Financial Results (1)

The Company is Gearing Towards the Official Opening of its Project in Israel, while Also Creating a Strong U.S Presence through its Upcoming Pilot at the Port of Los Angeles, and its Progress in Promoting the First Onshore Wave Energy Implementation in the State of New Jersey. At the Same Time, Eco Wave Power is Reinforcing its European Presence with Planned Projects in Portugal and Spain, with a Clear Goal of Moving Towards Larger Scale Deployments.

STOCKHOLM, Sept. 28, 2022 /PRNewswire/ — Eco Wave Power Global AB (publ) («Eco Wave Power» or the «Company») (NASDAQ: WAVE), 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 provided a corporate update and reported its financial results as of and for the six months ended June 30, 2022.

Management Commentary

«Eco Wave Power continues to advance important initiatives, with 2022 being a year thus far of executing new projects, broadening our project pipeline in Europe and penetrating the U.S. market, with new initiatives in the State of California and the State of New Jersey,» commented Inna Braverman, Founder and Chief Executive Officer. «We have previously proven our technology in Gibraltar and are now advancing the build out of new deployments at Jaffa Port in Israel and the Port of Los Angeles in the State of California, while also moving forward with new and exciting Concession Agreements in Portugal, Spain and additional areas of interest, with a clear goal of reaching large scale deployments in the near future.»

Continued Braverman, «Our approach is well-aligned with global initiatives, including legislation and renewable energy mandates, such as the recent $369 billion Renewable Energy Bill Initiative by the U.S. Government (The Inflation Reduction Act of 2022). According to the U.S. Energy Information Administration, wave energy off the American coasts could have generated the equivalent of about 66% of all the electricity generated across the country in 2020. I have been discussing the positive shift that we believe we are able to bring to the energy ecosystem at recent events, including the UN Ocean Conference, the New York Climate Week, the CODE conference in Los Angeles and the Atlantic ‘Next Scientific Revolution’ Conference, while simultaneously meeting with forward-thinking legislators, seeking to integrate wave energy in their state’s respective renewable energy policies. Interest is growing, which we believe enables Eco Wave Power to promote new projects faster, enter into new Concession Agreements, and reduce legislation related barriers. As a result, we are increasingly confident in our ability to introduce wave energy as an innovative, exciting and viable renewable energy source.»

Pipeline Development Update

Eco Wave Power has demonstrated continued progress expanding its presence in its core markets of interest, currently being its country of origin, Israel, the U.S. and Europe. This includes a gearing up towards the opening of its first grid connected wave energy project in Israel, and progress towards its first deployment in the U.S., in parallel with advancements in Portugal coupled with plans for further deployments in Spain and other locations of interest. As of 2022, Eco Wave Power holds a project pipeline of up to 327.7 MW, which is expected to grow in the upcoming year.

Significant Development Progress at Jaffa: In August 2022, Eco Wave Power officially commenced real conditions test runs of its EWP-EDF One wave energy pilot project at the Port of Jaffa in Tel Aviv, Israel. During the testing, which is conducted for the purpose of examining the operation of the mechanical and hydraulic subsystems of the project, the Eco Wave Power floaters were lowered to the water and tested for the very first time, resulting in a green light for the next phases of the project, which includes grid connection works by the Israeli Electrical Company («IEC’) and testing of the overall system, to be followed by full operation. Once testing and final works are completed, including the grid-connection, the Company will have an official launch of its power station marking the first time in Israel’s history that electricity produced by the power of waves will be transmitted to the national electric grid. On August 23, 2022, Eco Wave Power announced that the Israeli Electric Authority («IEA») has set an official Feed-in Tariff («FIT») for the EWP-EDF One project. With the FIT in place, the IEC commenced operations to officially connect the EWP-EDF One wave energy project to Israel’s energy grid.

First U.S. Deployment Advances in Los Angeles: Eco Wave Power’s energy conversion unit, formerly deployed in Gibraltar, is in transit to AltaSea’s 35-acre campus located at the Port of Los Angeles, the nation’s busiest seaport, set to arrive in early October 2022. The AltaSea pilot station will be the first U.S. location for Eco Wave Power’s technology and is part of Eco Wave Power’s increased focus on bringing its pioneering wave energy technology to the U.S. and expanding its worldwide presence.

Progress Towards First of its Kind Legislation in the State of New Jersey: The Company has worked closely with New Jersey State Assemblyman Robert Karabinchak who announced in January 2022 his intent to introduce new legislation to bolster wave energy as the next, up-and-coming renewable energy source, recognizing this technology’s incredible potential. Assemblyman Karabinchak has said that the State can aim to include wave energy in its Energy Master Plan and develop a streamlined process for its deployment along New Jersey’s coast. This action will help New Jersey become the first U.S. state or territory to have a commercial wave energy proof of concept. In line with the announcement, in June 2022, Assemblyman Karabinchak introduced Bill A4483, which calls for the utility board to create a commercialization and deployment plan and to offer financial incentives to companies and port owners for executing wave energy power stations. On September 22, 2022, the bill passed the Assembly Committee.

Eco Wave Power believes that the $369 billion in energy security and climate change investments from the Inflation Reduction Act of 2022, combined with the Company’s recent progress in the states of California and New Jersey, will serve as a significant boost to the Company’s commercialization plans for the U.S.

New Agreements in Europe: In April 2022, Eco Wave Power entered into a Concession Agreement with Port Adriano on the island of Mallorca, Spain, for the potential construction of a wave energy power plant of up to 2 MW. 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. In addition, in June 2022, Eco Wave Power announced plans for a 1 MW Project in Halki Island, Greece.

First Half 2022 Financial Overview

Revenues for the six months ended June 30, 2022, were $26,000 compared to $31,000 in the same period last year, with revenue related to 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 expenses were $2.1 million, up 64% in the same period last year.

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