WAVE - Eco Wave Power Global AB (Publ) (WAVE) Q3 2023 Earnings Call Transcript

2023-12-05 20:03:01 ET

Eco Wave Power Global AB (Publ) (WAVE)

Q3 2023 Earnings Conference Call

December 5, 2023 5:00 PM ET

Company Participants

Inna Braverman - Co-Founder and CEO

Presentation

Operator

Greetings. Welcome to the Eco Wave Power Third Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note this conference is being recorded.

I will now turn the conference over to your host, Inna Braverman. You may begin.

Inna Braverman

Thank you. Thank you for joining our third quarter investor call. I would like to start the call with an update regarding our operational and near future projects. As some of you may know, we finalized the construction of the EWP EDF One Project in the Port of Jaffa in Israel. The EWP EDF One Project was co-funded by EDF Renewables IL who owns 50% of the project, and by the Israeli Energy Ministry, which recognize our technology as pioneering technology. The project is of 100 kilowatts installed capacity and is comprised of 10 floaters. In August 2023, the power station was officially connected to the Israeli national electrical grid, marking the first time in the history of Israel that electricity produced by the power of the wave was sent to the national electrical grid of the country. Currently, our engineering team is performing calibration of the automation system of the power plant, and is testing the durability and operation of the equipment.

About a week ago, our engineering team tested operation of the power station during a storm with waves up to 3.5 meters. There was no damage that occurred to the floaters' mechanism during the storm, proving the technology's durability. In addition, during the tests, we reached peak energy of around 32.4 kilowatt that was sent to the grid and stable average energy output of around 10 kilowatts per hour. These results are encouraging for the first phase of the testing, and we are expecting to see significant increase in production by the end of the testing phase.

The next project that we are planning to launch will be in the Port of Los Angeles. Currently, we have a fully assembled energy conversion unit and 1 floater mechanism in the premises of the Port of L.A. During the third quarter, we have finalized the civil engineering design for the installation of the floaters to the marine structure in the Port of L.A. In collaboration with KPFF, a California based civil engineering firm, which officially approved the safety of our design. We have submitted the detailed design and KPFF approval to the Port of Los Angeles and are now pending the final necessary licenses from the Port of L.A. and the Army Corps of Engineers. Once received, we will produce 7 additional floater mechanisms and immediately proceed to installation in Los Angeles. The project in the Port of L.A. will be our first official penetration to the U.S. market, which we view as an extremely strategic market for Eco Wave Power, especially given the fact that according to the United States Energy Information Administration, wave energy, on its own, can supply 66% of all the United States' energy needs.

And also given the fact that in the beginning of October 2023, California Governor, Gavin Newsom, signed California Senate Bill 605 into law, a historic moment for wave energy in America. The legislation directs the California Energy Commission to evaluate the feasibility of wave and tidal energy in California, including the costs and benefits of implementing the technology along the State’s coastline.

And now to one of our most exciting projects. In Portugal, we have entered a Concession Agreement for a 20 megawatt power station in the City of Porto, which is expected to be our first commercial scale implementation. The project is planned to commence with the construction of 1 megawatt and to gradually increase to the scale of the whole 20 megawatts, a scale that was never built in the wave energy industry. We are very excited to update that we have received the last approval necessary for the commencement of the project execution work of our first megawatt in the City of Porto. As a result, we are currently setting an execution bond for the project. And once set, we will have 24 months to construct the full project. We are expecting that this project will show that wave energy can be cost-efficient, reliable, environmentally-friendly and easily connected to the national grid. We also aspire to show profitability in our first commercial scale project, positioning wave energy as a significant part of the world's renewable energy mix.

During this period, Eco Wave Power has also received two grants. One grant is from the European Union, as part of the ENI CBC Mediterranean Sea Basin Programme, and the latest grant is from the government of the UK. In the total amount of $1.83 million to be shared by the different partners in the grant consortium, which include Queen Mary University of London, Toshiba, Hitachi and other leading global companies.

With respect to our new collaboration, I would like to update that our collaboration with Lian Tat Company in Taiwan is progressing as planned. In October 2023, the President of Taiwan visited Lian Tat's exhibition of Eco Wave Power technology in the Taipei International Exhibition Center and announced that the Taiwanese government will actively promote the development of forward-looking renewable energy such as wave power. Eco Wave Power and Lian Tat are currently working towards Eco Wave Power's official visit to Taiwan and towards finding a first location for a planned joint wave energy pilot.

We have also received purchase orders and completed feasibility studies for world leading organizations, which include Rogan Associates, which is a Greek company that ordered a feasibility study for a 2 megawatt wave energy project in the Port of Heraklion in Greece; JESA Engineering from Morocco, which ordered a feasibility study for a port in Morocco. Chevron Corp, which issued a purchase order for a feasibility study for the installation of Eco Wave Power’s technology on an offshore gas drilling platform in Israel, and the latest purchase order is from Shell, which ordered a feasibility study that is meant to explore wave energy potential in the U.S. and around the globe. The revenues from all purchase orders and associated feasibility studies will be recognized in our fourth quarter's report, which will be published in the beginning of 2024.

I think it is important to state that even though Eco Wave Power has achieved significant progress, we have also shown a significant decrease in our net financial loss for the nine months of 2023. During this month, our net loss was around $1 million compared to a net loss of around $2 million in the same period last year. Now more than ever, we remain strong, resilient and deeply committed to advancing our wave energy projects. Please note that from now on, we will be having quarterly calls on a regular basis, updating regarding new strategic collaborations, our operational and upcoming wave energy projects and new grants and orders, as we would like to share our mission and achievements with our investors on a regular basis.

If you have any questions after the call or you would like to receive a script of the call, please don't hesitate to contact us. Our contact information is available on our website. Thank you for joining.

Question-and-Answer Session

Operator

For further details see: