NEW YORK (TheStreet) -- Shares of Ocean Power Technologies (OPTT) were higher in after-hours trading on Tuesday as the Department of Energy announced new funding for an open-water wave energy test site.
The DoE announced up to $40 million in funding for the test site, which will contain at least three test berths to simultaneously and independently test wave energy devices.
Ocean Power Technologies, based in Pennington, NJ, is a renewable ocean wave energy company.
The DoE's site will be used to gather critical performance data to address technical risks, lower costs and influence future designs for devices.
"If successful, the advancements made possible by this work will further America's progress in proving wave energy as a viable source for our nation's clean energy future," the DoE said in a statement.
Recent studies indicated that the technically recoverable wave energy resource in the U.S. falls in the range of 900 to 1,230 terawatt hours. About 90,000 homes can be powered by 1 terawatt hour per year, the DoE noted.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D-.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.