The relentless energy of the ocean has long been an untapped source of power, but that could soon change. With a major U.S. testing site opening in 2026, record-breaking federal investment, and the global race to achieve net zero emissions intensifying, marine energy is poised for a breakthrough. Developers are refining designs, overcoming past setbacks, and eyeing commercial success in a sector that has the potential to reshape the renewable energy landscape.
The ocean represents one of the largest untapped sources of clean energy on the planet. The potential is staggering—wave energy alone could theoretically supply over 60% of the U.S. grid’s electricity demand. In Australia, wave energy could generate more than 1,300 terawatt-hours annually, nearly five times the country’s energy needs. However, harnessing this immense power has proven challenging. Ocean waters corrode equipment, batter mechanical components, and pose significant durability hurdles. A recent example of this was seen in November when a “bomb cyclone” struck a marine energy testing site in Oregon with 19-foot waves, underscoring both the energy potential and the risks involved.
Despite these challenges, momentum is building. The Biden administration has allocated $112.5 million in funding—the largest U.S. investment in wave energy to date—through the Department of Energy’s Water Power Technologies Office. Additionally, 20 startups have received $10,000 cash prizes to further their research. Central to these efforts is PacWave South, a cutting-edge testing facility in Oregon developed in collaboration with Oregon State University and other stakeholders. Set to begin operations in 2026, the site will allow developers to refine their technologies under real-world conditions.
Industry experts believe that marine energy is reaching a turning point. The sector has faced numerous setbacks, but with ongoing technological improvements and increasing global investment, viable commercial solutions are within reach. Offshore engineer Hugh Wolgamot of the University of Western Australia highlights wave energy’s consistency as a key advantage, noting that while costs remain high, its reliability makes it an essential complement to solar and wind power. With governments worldwide seeking aggressive emissions reductions, marine energy is gaining recognition as a crucial piece of the clean energy puzzle.
History shows the challenges of bringing marine energy to market. The European Marine Energy Centre (EMEC) in Scotland, established in 2004, has tested numerous wave energy prototypes, including the once-promising Pelamis Wave Energy Converter. Despite initial success, financial difficulties led to the company’s closure in 2014. Finnish company Wello Oy developed the Penguin, an innovative wave-energy device, but after years of trials, the company filed for bankruptcy in 2023. These cases illustrate the high costs and long development timelines that have hindered marine energy’s commercialisation.
Nevertheless, fresh investment and new strategies are reshaping the field. Several companies are preparing to test prototypes at PacWave South. California-based CalWave has developed a floating disk that adjusts to wave conditions, while Virginia-based C-Power is working on a floating raft with a hanging pendulum design. Stockholm-based CorPower is securing significant funding for its buoy-based wave farms, which could be integrated with offshore wind farms to maximise energy capture. These innovations could finally push wave energy toward commercial viability.
Tidal energy, a more established segment of marine power, has also demonstrated long-term viability. The MeyGen project in Scotland, operational since 2018, features four 1.5-megawatt tidal turbines that have consistently generated power. Plans are in place to expand the project to nearly 400 megawatts, while a new French tidal farm set to open in 2026 will feature seven 2.5-megawatt turbines. Unlike wave energy, tidal power benefits from predictable water movement, making it an attractive option for large-scale deployment.
Beyond grid-scale applications, marine energy could serve niche markets. Remote communities, such as those in Alaska, could rely on wave power where wind and solar resources are insufficient. Other applications include refrigeration for fisheries, dredging for navigation channels, and even desalination. Boston-based Resolute Marine is exploring the use of wave energy to power desalination plants, potentially revolutionising water access in arid regions. Breakwater installations, like the successful Mutriku project in Spain, offer another promising avenue for capturing wave energy while simultaneously protecting coastlines from erosion.
With marine energy gaining momentum, investors are taking note. The combination of rising demand for renewables, technological advancements, and increasing government support is creating a fertile ground for growth. As industry leaders refine designs and scale up deployments, the dream of harnessing the ocean’s vast energy potential is closer than ever to becoming a reality.
SAE Renewables Limited (LON:SAE) was founded in 2005 as a supplier of tidal stream turbines, SAE quickly grew to include development of tidal stream projects and is the majority owner of MeyGen, the world’s largest tidal stream energy project.
