Eco agreement with China
Israel based wave energy device developer, Eco Wave Power (EWP), has signed an initial collaboration agreement with a Chinese governmental fund for the establishment of a local wholly foreign owned enterprise (WFOE).
Under the agreement, EWP will set up Eco Wave China, the WFOE, to promote its technology throughout the country and the development of local production facilities. EWP will be allocated an office and factory space of 300m³ and a financial support period of two years.
David Leb, CEO, Eco Wave Power, said: “We believe that China is being innovative by replacing some of its coal and other green gas polluting methods of energy and using more renewables such as solar, wind and now wave energy. Eco wave power is happy to be part of China’s renewable energy mix, and we are hoping that other countries do the same.”
The agreement comes as China’s Electricity Council (CEC) announced that China will face an increase in power supply shortages this year due to the shortage of coal. The CEC estimates that the power shortages will reach 70m kilowatts in 2013, compared with only 30m kilowatts in 2011 and almost 50m kilowatts in 2012.
The initial investment value will be YEN 5m (US$814,000), with YEN 4m (US$651,000) provided by the fund, while YEN 1m (US$162,000) will be matched by EWP.
EWP China is also expected to raise additional funds to carry out its commercial scale projects.
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