Protean Energy has agreed to sell its wave energy technology to Pearl Clean Energy following the decision to divest its interest in the sector.
Under the binding term sheet agreement, the Australian companies have arranged that Pearl Clean Energy will obtain 100% of Protean Energy’s wave energy assets and spend a minimum of Au$700,000 ($512,000) within the first five years from signing the deal.
Also, Pearl Clean Energy will be paying a 1.5% royalty on all future revenue generated from the wave energy assets to Protean during the first ten years from signing the agreement, the companies notified.
Protean will incur no further costs associated with the wave energy assets, the company said.
Protean’s decision to divest its interest in the wave energy converter assets comes as a result of the previously undertaken strategic review of its assets.
“The decision is consistent with the Company’s focus on developing its Daejon vanadium project in Korea whilst concurrently working to commercialize the V-KOR vanadium redox flow battery technology,” Protean said in a statement.
The Protean wave energy is said to be able to convert the energy of waves from all six degrees of wave movement.
It works when waves moving past the buoy cause it to move in a circular manner. As the buoy moves, the counterweights also move, continuously lengthening and shortening mooring cables which makes the pulley rotate.
The rotation of the pulley creates shaft power and using electric, hydraulic or water pump – the wave energy is converted into a usable form.