If the first unit deployed proves successful, the second stage would feature up to 11 Wave Dragon units at a more energetic site in deeper water with a total capacity of 77MW (subject to regulatory consents). These units are expected to be deployed during 2008 and 2009 and are projected to power up to 60,000 homes.

A Wave Dragon unit is an offshore floating device that works by channelling waves into a reservoir which is above sea level. The water is then released through a number of turbines and generates electricity in the same way as hydro power plants. The technology has been developed and tested over eight years in tanks in Denmark and Ireland.

It is expected that the energy generated from the project will be sold by KPR. The energy will provide an alternative to fossil fuel derived electricity, reducing CO 2emissions and generating valuable credits in the form of Renewable Obligation Certificates.

The total cost of the first stage of the development is projected to be £12m. It is intended that the projects in Wales will be managed by the special purpose vehicle Wave Dragon Wales Limited. The Wave Dragon technology would be provided by Wave Dragon ApS, while KPR would be responsible for the overall development of the project, including financing.

KPR believes the project could potentially generate new jobs in a wide range of industries across Wales and beyond, including maritime services, engineering and construction, and through extensive collaboration with Welsh universities. If the second stage of the development is undertaken, KPR directors anticipate the construction phase could create up to 1,000 jobs, with around 20 permanent operational jobs.

MJ Information No: 21512