Ocean Power Technologies has taken a step towards volume production of its PowerBuoys by signing an engineering agreement with Lockheed Martin.

The announcement is the third this month from the Aim-quoted company, which is developing systems that harness wave movement through offshore buoys in order to generate electricity. It will work with Lock heed to develop wave power systems on a utility scale. It envisages a 10MW power station covering 30 acres off the US west coast.