Eco Wave Power Global AB (publ) Q3 2023 Earnings Call Transcript

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December 5, 2023

There are 2 speakers on the call.

Operator

Welcome to the Ecowave 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. Please note, this conference is being recorded. I will now turn the conference over to your host, Ina Breverman, you may begin.

Speaker 1

Thank you. Thank you for joining our Q1 investors 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 have finalized the construction The EWP EDF1 project in the Port of Jaffa in Israel. The EWP EDF1 project It was co funded by EDF Renewable Zael, who owns 50% of the project and by the Israeli Energy Ministry, which recognize our technology as pioneering technology.

Speaker 1

The project is of 100 kilowatt installed capacity and is comprised from 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 weight up to 3.5 meters. There was no damage that occurred to the floater's mechanism during the storm, proving the technology's durability.

Speaker 1

In addition, during the test, we reached peak energy of around 32.4 kilowatt that was sent to the grid And stable average energy output of around 10 kilowatt per hour. These results are encouraging for the first phase of the testing, And we're expecting to see significant increase in production by the end of the testing phase. The next project that we are planning to launch We'll be in the Port of Los Angeles. Currently, we have a fully assembled energy conversion unit and one floater mechanism in the premises of the Port of LA. During the Q1, we have finalized the civil engineering design for the installation of the floaters to the marine structure in the Port of LA In collaboration with KPFF, a California based civil engineering firm, which officially approved the safety of our design.

Speaker 1

We have submitted the detailed design and KPFF's approval to the Port of Los Angeles and are now pending the final necessary licenses From the Port of LA and the Army Corps of Engineers. Once received, we will produce 7 additional floater mechanisms and immediately proceed The project in the Port of LA will be our first official penetration to the U. S. Market, which we view as an extremely strategic market for Eco West Power, especially given the fact that according to the United State 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 in Toulo, a historic moment for Wave Energy in America.

Speaker 1

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 And now to one of our most exciting projects. In Portugal, we have entered a concession agreement for 20 Megawatt Power Station in the City of Porto, which is expected to be our 1st 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's execution work of our first megawatt in the city of Porto. As a result, We are currently setting an execution bond for the project.

Speaker 1

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 Waste Power has also received 2 grants. One grant is from the European Union as part of the NECBC Mediterranean Sea Button Program And the latest grant is from the government of the UK.

Speaker 1

In the total amount of $1,830,000 To be shared by the different partners in the Grand 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 Our collaboration with Liantat Company in Taiwan is progressing as planned. In October 2023, the President of Taiwan Visited Lianta's exhibition of Eco Waste Power Technology in the Taipei International Exhibition Center and announced The Taiwanese government will actively promote the development of forward looking renewable energy such as Wave Power. Ecowave Power and Lian Tatz are currently working towards Ecowave Power's official visit to Taiwan and towards finding a first location for a planned 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 Our 2 Megawatt Wave Energy Project in the Port of Heraklion in Greece Jessa 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 Ecowave Power 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 The revenues from all purchase orders and associated feasibility studies Will be recognized in our 4th quarter's report, which will be published in the beginning of 2024.

Speaker 1

I think it is important to state that even though EcoWave Power has achieved significant progress, we have also shown a significant decrease In our net financial loss for the 9 months of 2023. During this month, our net loss was around $1,000,000 Compared to a net loss of around $2,000,000 in the same period last year. Now more than ever, we remain strong, resilient and deeply committed to advancing our wave energy project. 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 achievement with our investors on a regular basis. If you have any questions after the call or you would like to receive a script

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Key Takeaways

  • Port of Jaffa project completed 100 kW deployment and successfully connected to the Israeli grid, with no storm damage and peak output of 32.4 kW.
  • Port of Los Angeles project design approved by KPFF and pending final licenses, marking Ecowave’s first entry into the strategic U.S. market.
  • 20 MW concession in Porto signed for Ecowave’s first commercial-scale wave energy station, starting with 1 MW and scaling to 20 MW within 24 months.
  • Secured $1.83 million in EU and UK grants and multiple feasibility-study orders from partners including Chevron and Shell, with revenues to be recognized in Q4.
  • Reduced net financial loss to approximately $1 million for the first nine months of 2023, down from $2 million in the same period last year.
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Earnings Conference Call
Eco Wave Power Global AB (publ) Q3 2023
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