2 June 2004 - AMEC, the international project management and services company, ScottishPower and Ocean Power Developments are to conduct a large-scale feasibility study of wave power off Scotland.

Working under a memorandum of understanding, AMEC, ScottishPower and Ocean
Power Delivery (OPD), a specialist wave power design company, will assess
the technical and commercial viability of a demonstration project utilising
OPD's floating Pelamis (Greek for sea snake) generator.

Pelamis comprises four 24-metre canisters aligned perpendicular to the waves, generating
electricity from the relative motion at the flexible joints between each of
the canisters. Each Pelamis machine has a maximum output of 750kW and on
average would produce enough green energy to power over 600 homes.
The first full scale unit has been completed and trials at the Marine Energy
Test Centre in Orkney are due to start in summer 2004.

Alastair Rennie from AMEC said, "As a leading proponent of sustainable
development we wholeheartedly endorse the Government's support of renewable
energy, and the work that has brought Pelamis this far. The agreement with
Scottish Power and OPD will allow us to see the technical and commercial
potential of the Pelamis technology and, if commercially acceptable, could
pave the way for large-scale application of this environmentally-friendly
source of energy."

Alan Mortimer from ScottishPower said, "Support for marine renewables in
Scotland is very strong. With wave power Scotland has a clear opportunity to
take a global lead particularly with OPD, a Scottish-based company, being
recognised as a world leading wave technology developer. Before the resource
can be fully accessed however, it is imperative that the technology is
demonstrated as being viable, both technically and commercially, hence the
need for a reasonably large demonstration project. The feasibility study
will look very closely at the viability of such a project, incorporating
technical and commercial parameters and including of course the performance
of the prototype machine, before deciding whether to proceed."

Richard Yemm Managing Director of OPD said, "Scotland currently enjoys a
narrow lead in this exciting new sector. However, aggressive
commercialisation of the technology in our own waters is the only way to
secure the considerable onward economic benefits. OPD will be working
closely with ScottishPower and AMEC to build a robust economic case and
route-map for commercial scale demonstration of the Pelamis system. We hope
that this announcement will expedite government commitment to backing
this home grown opportunity, to give it the support required to keep our
noses in front."