The Government funding will be used by OPTA and Leighton to advance the construction of a wave power station to be built in three phases off the coast of Victoria near the city of Portland, with a total expected capacity of 19MW. The project is to be developed by a special purpose company, Victorian Wave Partners Pty Ltd, that was formed by OPTA and Leighton in December 2008. Work on the project is expected to 2010.

The grant is conditional on the signing of a Funding Deed stipulating the conditions for the grant, which includes funding milestones. Victorian Wave Partners will be required to seek additional funding to enable the completion of the project.

In total, the Australian Government awarded A$235M to four renewable energy projects. The other projects to receive grants were two geothermal projects proposed by Petratherm and Geodynamics, which would deploy different technologies in two different geological settings, and Hydro Tasmania’s King Island project to demonstrate the integration of wind, solar and storage with a biodiesel generator.