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24^th February 2006 (Source: Department of Trade and Industry )

"The UK marine energy industry is a world leader and Ocean Power Delivery in Scotland is at the forefront." Energy Minister Malcolm Wicks said today as he was given a tour of OPD's site in Methil, Fife.

The Minister saw production of the 'Pelamis' wave energy converters before travelling on to Edinburgh to meet businesses, environmental groups and other Scottish stakeholders at a conference examining future technologies and transport issues.

Wicks said: "Scotland has traditionally been a powerhouse for the UK in terms of energy from oil and gas in the north sea and from coal, so it is exciting to see it at the forefront again of exploiting new, cleaner and greener energy sources such as wave and wind.

"Marine technology has the potential to make a significant contribution to Britain's future energy needs and it is vital that we develop the technology that can harness the potential in our seas. I'm pleased to have this opportunity to see the work being done in Scotland that is helping to achieve that aim."

Max Carcas, OPD's Business Development Director stated: "We are delighted that the Energy Minister is able to see first hand what we have created here, particularly in the context of the current energy review. Wave power is a substantial energy resource that will never run out and has minimal fuel price volatility into the future. Generating electricity from waves produces virtually no emissions or harmful waste products."

Richard Yemm, OPD's Managing Director added: "We hope that the minister's energy review will prioritise new long term market incentives to maximise UK benefit and deliver a vigorous wave energy industry - one that can help to meet the country's challenging carbon abatement goals, and position the country to secure the lion's share of a £500bn worldwide market."

Wicks, who has been asked by the Prime Minister to lead a review of long-term energy policy, is in Scotland as part of the three-month public consultation period about how the UK should meet its energy challenges.

Commenting on the wider review, Wicks said: "Global fossil fuel prices are on the rise and, with the gradual decline of reserves from the North Sea, we're starting to rely more on imports from abroad. In a world of heightened concerns about energy security, highlighted by the recent dispute between Russia and the Ukraine, we need to look carefully at the risks of this new situation.

"We also need to look closer to home. Thirty per cent of energy is used domestically with each resident in Scotland responsible on average for emitting 2.9 tonnes of carbon dioxide annually. The plasma TV generation is increasingly packing homes with consumer electronics, domestic appliances and gadgets, often left needlessly on standby. This squanders more than £740 million worth of energy and this contributes to over four million tonnes of excess carbon dioxide emissions every year, significantly contributing to climate change.

"If we are going to make the best decisions for our energy future, we all, experts and public alike in Scotland, need to engage constructively in the debate over the coming months."

Artist's impression of a wave energy farm using Ocean Power Delivery equipment

Inside the tubes, hydraulic rams powered by wave motion drive an electric generator

Notes for Editors

1. The minister is today touring OPD's new production line at the Fife Energy Park, Methil where OPD are currently assembling eight of nine Power Conversion Modules for export to Portugal in what will be the world's first wave farm project. The modules were originally fabricated in Stonehaven by Ross Deeptech, an experienced offshore fabricator. After completing installation of the electro-hydraulic power take-off systems the modules will be transported to Lewis where they will join the other elements of the Pelamis system currently being fabricated by Camcal, a specialist in large cylindrical structures. All the component parts will then be shipped to Portugal for final assembly prior to commissioning and final deployment. The first Pelamis machine will be shipped to Portugal in the next three weeks, with the first modules being transported to Lewis next week.

2. The Minister is also attending the energy review stakeholder event at Dynamic Earth visitor centre, Holyrood Rd, Edinburgh from 2-5pm.

3. The energy review consultation document is published at http://www.dti.gov.uk/energy/review. Anyone wishing to make a contribution can do so on-line or in writing to Energy Review Team, DTI, 1 Victoria Street, London SW1H 0ET or . The closing date for submissions is 14 April.

4. The key questions posed by the consultation document are:

-What more could the Government do on the demand or supply side for energy to ensure that the UK's long-term goal of reducing carbon emissions is met?

-With the UK becoming a net energy importer and with big investments to be made over the next twenty years in generating capacity and networks, what further steps, if any, should the Government take to develop our market framework for delivering reliable energy supplies? In particular, we invite views on the implications of increased dependence on gas imports.

-The Energy White Paper left open the option of nuclear new build. Are there particular considerations that should apply to nuclear as the Government reexamines the issues bearing on new build, including long-term liabilities and waste management? If so, what are these, and how should the Government address them?

-Are there particular considerations that should apply to carbon abatement and other low-carbon technologies?

-What further steps should be taken towards meeting the Government's goals for ensuring that every home is adequately and affordably heated?

Comments are also invited on:

-The long-term potential of energy efficiency measures in the transport, residential, business and public sectors, and how best to achieve that potential.

-Implications in the medium and long term for the transmission and distribution networks of significant new build in gas and electricity generation infrastructure.

-Opportunities for more joint working with other countries on our energy policy goals.

-Potential measures to help bring forward technologies to replace fossil fuels in transport and heat generation in the medium and long term.

5. Ocean Power Delivery Ltd was formed in 1998 and has spent the past 7 years developing, testing and refining the Pelamis Wave Energy Converter concept. The company was the first company to gain an independent design verification, the first to generate electricity into the grid from a commercial scale offshore wave energy converter, and the first to secure an order for a commercial wave farm project. The company currently employs 60 staff and is working to secure projects in the UK with Scottish Power and Amec in Scotland and Ocean Prospect in the South West of England. The company is also actively pursuing project sales in Western Europe, North America, Africa, Asia and Australasia. Over the past seven years the company has been allocated £3.1m of support through the DTI's New and Renewable Energy R&D programme, enabling the company to secure £25m in investment and contracts, with more than 95% spent in the UK and with UK suppliers.

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