PENNINGTON, N.J. (AP) -- Defense contractor Lockheed Martin Corp. and a New Jersey-based alternative energy company announced Monday an agreement to develop a utility-scale generation project that would harness power from waves in the Pacific Ocean.
Ocean Power Technologies Inc. in Pennington, N.J., will build the power takeoff and control systems and provide its technology that uses an oceangoing buoy to capture and convert wave energy into electricity.
Lockheed Martin, based in Bethesda, Md., would provide construction, systems integration and deployment of the plant, and operations and maintenance services.
Financial terms of the agreement were not disclosed.
The prospective wave power project is expected to be off the coasts of California or Oregon.
The two companies are seeking to capitalize on public investment in alternative power.
"This collaboration will serve to draw on the key strengths of each company and leverage our respective commitments to renewable energy as both the U.S. federal and state governments increase their investment in the sector," said George W. Taylor, chief executive of Ocean Power Technologies.
Shares of Lockheed Martin rose $1.36, or 1.7 percent, to $82.34. Ocean Power Technologies rose 31 cents, or 5 percent, to $6.50.