“China has dramatically improved its compliance rate with building energy codes in only five years,” writes Shui Bin in a new report released by the Global Buildings Performance Network (GBPN) and the American Council for an Energy-Efficient Economy (ACEEE), Third Parties in the Implementation of Building Energy Codes in China. In the report, a third party refers to a company not affiliated with developers and regulatory bodies, but directly or indirectly involved in the process of ensuring compliance with building energy codes.

“The significant improvement is rooted in strong governmental regulatory support; clear rules about the responsibilities of key stakeholders and penalties for non-compliance; and an effective national program of inspection,” notes Dr. Shui.

In 2005, the Chinese government launched a series of national policies and projects to promote the enforcement of building energy codes. According to the country’s annual national inspection of building energy efficiency (which surveys four megacities, the majority of 30 provincial capitals, and two randomly selected cities in each province), compliance rates in large and medium-sized cities have risen from 53% (design stage) and 21% (construction stage) in 2005 to 99.5% and 95.4%, respectively, in 2010.

The energy code compliance rate in China is defined as compliance with mandatory items in building energy codes at both the design and construction stages. The reported compliance rates do not take into account small towns and rural areas. Some international building experts have suggested that the definition of compliance needs to be improved. Nevertheless, the compliance rates point to the strong performance of the overarching institutions, including the functioning of third parties, between 2005 and 2010. Factors contributing to China’s success include: strong regulatory support; multiple agencies involved in compliance efforts; the employment and transparent management of third parties (there were 5,500 certified construction inspection companies as of 2009); and clear penalties for non-compliance.

China’s system “lends itself to getting better compliance rates, because there is effective oversight from the local to the national level and the energy code is seen as equally important as fire and life safety codes,” says Ryan Meres, Code Compliance Specialist at the Institute for Market Transformation.

For China’s energy code compliance to continue to improve, the bidding process needs further protection against corruption, Dr. Shui writes. The education and training of construction workers must also be addressed. Information about code requirements and construction techniques needs to be more widely disseminated, as well.

Even greater savings could be achieved. Updates to existing standards and new standards for other products that can be completed between now and 2015 could net consumers and businesses another $170 billion and reduce pollution even further.

The study by the American Council for an Energy-Efficient Economy (ACEEE) and the Appliance Standards Awareness Project (ASAP) finds that existing standards will save 200 quads of energy by 2035, with another 42 quads of savings achievable with new standards. A “quad” is a measure of energy—the U.S. economy uses a total of about 100 quads per year.

“Improving the energy efficiency of everyday products with common-sense standards has proven to be one of the best ways to save consumers and businesses money while protecting the environment and avoiding the need to build expensive new power plants,” said Andrew deLaski, executive director of ASAP, a coalition of consumer, environmental, and efficiency groups. “Standards have been a bipartisan energy policy success story stretching across four decades and five presidencies.”

Existing energy efficiency standards cover about 55 categories of products, ranging from major home appliances like refrigerators to commercial products such as motors and roof-top air conditioners. Initial standards for many of these products were signed into law by President Ronald Reagan in 1987. Since then, Congress and the Department of Energy have repeatedly added new products and updated standards. The study published today examines what more can be done.

“Our research found that a combination of updates for existing standards and first-time standards for products like computers, TV set-top boxes, and street lights would add to the track record of big energy, economic, and environmental benefits achieved by standards,” said Amanda Lowenberger, lead report author and senior research analyst at ACEEE.

According to the report, existing standards reduced U.S. electricity use by 7 percent in 2010. Annual electricity savings from existing standards will increase to 14 percent by 2035 as consumers and businesses purchase new products compliant with the latest standards. New and updated standards that can be completed by 2015 would reduce 2035 electricity use by another 7 percent.

Direct natural gas savings from existing standards will reach 950 trillion BTUs by 2035, or enough to heat about one out of every three natural gas-heated homes. New and updated standards for gas products would add another 240 trillion BTUs in annual gas savings by 2035. New standards would also deliver enormous water savings: more than 430 billion gallons annually by 2035—enough to supply New York City.

“There’s no question standards have made a significant contribution to lowering home utility bills,” said Mel Hall-Crawford, energy projects director for the Consumer Federation of America. “And, there are more savings to be gained through future standards.”

According to the study, a typical household will save about $10,000 between 2010 and 2025 simply by purchasing products compliant with minimum standards. A typical household’s total electric bill over this period would be about 33% higher absent efficiency standards. Although efficient products typically cost more up front, the report found that the cost of more efficient products pays back in lower utility bills within about 3 years, with net benefits outweighing costs by 4 to 1.

“Energy efficiency standards are beneficial on so many levels,” said David Goldstein, co-director of the Natural Resources Defense Council’s energy program. “They help our environment, they help drive innovation and—as this report shows—they help consumers save money with every appliance they plug into their wall sockets.”

According to the report, already existing standards reduced U.S. greenhouse gas emissions by about 200 million metric tons in 2010 and the annual reduction level will grow to 470 million metric tons by 2035, or roughly the output of 120 coal-fired power plants. New and updated standards would reduce 2035 greenhouse gas emissions by another 200 million metric tons, or another 50 coal-fired power plants equivalents.

To assess the potential impact of future standards, the report evaluates 34 products for which new or updated standards could be adopted within the next four years. Products with the biggest potential additional energy savings include electric water heaters, reflector light bulbs, distribution transformers, electric motors, and computers. The largest net economic savings would come from new clothes washer and outdoor lighting standards.

To get started, PG&E customers can visit social.opower.com or search for the “Opower” app on Facebook and connect their utility account.

Customers who sign up will see how their home energy use compares to others with similar homes. As friends are invited and join in, people will then be able to engage in savings competitions. PG&E customers with a SmartMeter™ and My Energy account can get a leg up on their competition by logging onto pge.com/myenergy to view hourly electric data, gaining insight to further conserve energy.

“Many of our customers use social media to help them manage their daily lives, whether arranging a get-together or playing a social networked game,” said Steve Malnight, Vice President of Customer Energy Solutions with PG&E. “With this new app we are excited to offer customers a fun and engaging place to talk about how they use energy and show their friends how saving energy can mean saving money.”

Over time, the app will grow new capabilities, but already it enables customers to:

Compare energy use to similar homes: People can benchmark their home energy use against a national database of millions of homes. All benchmarking will be done on an aggregate level, ensuring customer data privacy.

Compare energy use among friends: Friends can compare their energy use, show how energy efficient they are, and share tips on how to improve.

Publish conversations about energy: Participants can share information about energy use, rank, group participation, and conservation tips through the Facebook newsfeed.

Engage in group cooperation: Communities of Facebook friends can form teams to help achieve collective goals.

Automatically import energy data: PG&E customers can choose to import their energy data into the application automatically. Customers from utilities that are not participating can input their energy usage into the app manually.

“Improvements in energy efficiency have the potential to deliver more than $700 billion in cost savings in the United States alone,” said Brandi Colander, with NRDC’s Energy and Transportation Group. “Motivating consumers to take action—a longstanding challenge—is the key to unlocking this potential.”

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest combined natural gas and electric utilities in the United States. Based in San Francisco, with 20,000 employees, the company delivers some of the nation’s cleanest energy to 15 million people in Northern and Central California.

For more information, visit http://www.pge.com/about/newsroom/ and www.pgecurrents.com.

“Advanced biofuels are a key component of President Obama’s ‘all-of-the-above’ energy strategy to limit the impact that foreign oil has on our economy and take control of our energy future,” said Agriculture Secretary Tom Vilsack. “By bringing together farmers, scientists, and the private sector to produce fuel for the American military, we can help spur an industry producing biofuels from non-food feedstocks all over the nation, strengthen our middle class, and help create an economy built to last.”

“The Biofuels Industry Roundtable will produce the market and industry expertise necessary to develop a domestic biofuel market capable of producing alternative fuel that is cost-competitive with traditional fuel,” stated Secretary of the Navy Ray Mabus. “The Departments of Navy, Agriculture, and Energy are investing in an existing private industry to spur growth, and each department will closely monitor how that investment is used to achieve the president’s objectives.”

The May 18, 2012 roundtable will focus on efforts to accelerate the production of bio-based fuels for military and commercial purposes. Last year, USDA, and the Departments of Energy and the Navy announced that – through the Defense Production Act – they will collaborate to accelerate the development of advanced, drop-in aviation and marine biofuels and marine diesel to help power our military. Participants in this roundtable will discuss next steps for those interested in pursuing the production of aviation biofuels and marine diesel. Topics will include production, distribution and contracting, and best practices. This roundtable follows a “match making” event hosted last week at USDA headquarters to promote connections between agricultural producers of energy feedstocks, and biorefineries.

In 2008, America imported 11 million barrels of oil a day. By the end of last year, that number dropped to 8.4 million barrels per day. In the last year alone, in part because of booming U.S. oil and gas production, more efficient cars and trucks, and a world-class refining sector that last year was a net exporter for the first time in sixty years, we have cut net imports by ten percent – a million barrels a day. And with the new fuel economy standards the President announced last year, we are on pace to meet our goal by the end of the decade. Developing advanced drop-in biofuels is another part of this comprehensive strategy to reduce America’s dependence of foreign oil.

As part of that strategy, and at Secretary Vilsack’s direction, USDA is working to develop the national biofuels industry producing energy from non-food sources in every region of the country. We are conducting and encouraging research into innovative new energy technologies and processes, helping companies build biorefineries – including the first ever commercial-scale cellulosic ethanol facilities – and supporting farmers, ranchers, and businesses taking risks to pursue new opportunities in biofuels. Along with Federal partners, we’re establishing an aviation biofuels economy, and have expedited rules and efforts to promote production and commercialization of biofuels.

After recent explosive growth capped by a 66% surge to 26.5 GW in 2011, solar installations will grind to a near halt this year — adding a mere 26.9 GW — while industry revenues drop from $110 billion in 2011 to $92 million in 2012 due to crashing prices. However, new installations rebound to 38.3 GW in 2017 as the industry learns to navigate a global market fast losing its subsidies, according to a Lux Research report.

A supply glut, caused mainly by Chinese manufacturers, speculation of incentive cuts in Europe and the end of the 1603 Cash Grant in the U.S., fueled the sharp growth in installations last year. “The solar industry’s storied history has created a massive misperception of technology maturity and commodity status,” said Matthew Feinstein, Lux Research Analyst and the lead author of the report titled, “Market Size Update 2012: The Push to a Post-Subsidy Solar Industry.”

“Opportunities remain and extended success is possible for stakeholders, but the market’s shifting geographic profile — combined with a forced withdrawal from subsidy addiction — means strategic, surgical moves are needed,” he added.

Lux Research analysts ran a levelized cost of energy (LCOE) analysis in 156 separate geographies, accounting for 82% of the world’s population, calculating internal rates of return, to determine the viability and competitiveness of solar in each market. That model and methodology is part of the Lux Research Solar Demand Forecaster. Among their conclusions:

– Emerging markets more than quadruple in size. Emerging markets will be both a battleground for suppliers and a source of great strength with South Asia accounting for the majority of growth, rising from 1 GW in 2011 to 4.5 GW in 2017. However, ASEAN, Africa and South America take the reins from 2017 to 2022, hurtling toward gigawatt status.

– Utility-scale application segment grows. In large emerging markets like China, utility-scale solar will gain as conditions favor fewer, larger-scale projects that allow more control over financing and regulatory factors. This segment will grow from 6.3 GW globally in 2011 to 13.8 GW in 2017.

– Oversupply still a possibility. Even the boom of 2011 was not sufficient to utilize all of the world’s module capacity, which reached 50 GW and pushed prices down to $1/W. With China’s 12th Five-Year plan calling for major expansions in solar capacity, global markets will still see strong downward price pressure.

– Securitization boosts smaller installations. Asset-backed securities are spurring growth of the small-scale segment in the U.S. residential and commercial markets. Securitization and “renewable bonds,” which have been tested in the past by SunPower (in Italy), and Wells Fargo (in New Jersey), are likely to see widespread growth in 2012 or 2013. Expect major commercial banks like Citigroup to lead this effort.

The report, titled “Market Size Update 2012: The Push to a Post-Subsidy Solar Industry,” is part of the Lux Research Solar Systems and the Lux Research Solar Components Intelligence services.

About Lux Research

Lux Research provides strategic advice and on-going intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.

SOURCE: Lux Research

The ESPC project implemented by ESG equates to direct savings to Michigan taxpayers and presents several positive implications for the State of Michigan on the fronts of sustainability, strategic energy independence and reduced utility consumption.

As a result of this innovative partnership, Parnall’s utility costs will be reduced by about 40 percent and water consumption costs will be reduced by more than $2 million, over the 10-year term of the ESPC contract. ESG guarantees the savings will meet annual payments to cover the $12.89 million project costs. This project has also created jobs with more than 48,760 man hours for skilled construction workers.

“Performance contracts may be one way to revolutionize how we manage our buildings in Michigan,” commented State Representative Joe Haveman, who chairs the Department of Corrections Subcommittee of the Michigan House Appropriations Committee. “By leveraging private sector expertise, which is able to guarantee savings, we should be able to make our buildings more efficient without spending additional taxpayer funds. Reducing costs in the Department of Corrections and other departments is what reinventing Michigan is all about.”

Michigan Governor Rick Snyder has repeatedly acknowledged that reinvesting in Michigan’s infrastructure is essential to growing Michigan’s economy and enhancing its quality of life. Underlining its commitment to achieving these goals, ESG brings years of experience in ESPC success for numerous Michigan customers in the government, education, healthcare and commercial sectors.

“As financial burdens continue to weigh heavily on the State of Michigan, ESG offers solutions that have the potential to save our state millions of dollars each year and eliminate needless spending,” said Jeffry Durham, ESG regional director. “Our team is proud to provide positive economic solutions that enable state agencies to replace old equipment with improved technologies, save taxpayer dollars with infrastructure improvements and create skilled trade construction jobs.”

Energy Systems Group (ESG) is an award-winning energy services company that specializes in delivering sustainable energy solutions which allow building owners to maximize energy efficiency and operational performance, while reducing their carbon footprint. Through its core business of performance contracting, ESG provides customers with innovative energy efficiency technologies and long-term financing solutions for modernization of their facilities and energy infrastructure. To learn more about ESG, visit www.energysystemsgroup.com .

CONTACTSJeffry Durham, Energy Systems Group | Tel: (734) 260-7320 | E-mail: jdurham@energysystemsgroup.com

SOURCE Energy Systems Group

Designed for industrial lighting applications, the Digital Lumens Intelligent Lighting System includes individually intelligent LED-based fixtures, which are wirelessly networked and centrally managed, to minimize lighting energy use. The system is deployed in the leading industrial facilities worldwide and is saving 100M kWh per year for our customers (see today’s announcement).

“This milestone acknowledges the broad innovations that set our lighting system apart in a fast-growing market,” said Brian Chemel, a co-author of the patent and co-founder and CTO of Digital Lumens. “The energy-saving benefits of LEDs are well known, but when coupled with digital control, they deliver a whole new level of energy efficiency. Integrated with wireless networking and a simple management interface, we’ve built a complete system that gives industrial lighting customers the power to both improve light quality and continually optimize its use — resulting in efficiencies that surpass any other lighting technology today,” said Chemel.

The patent application received expedited review under the U.S. Patent and Trademark Office’s Green Technology Pilot Program, which was established to accelerate the development of green technologies, create green jobs and promote U.S. competitiveness in this vital sector.

About Digital Lumens Digital Lumens develops Intelligent LED Lighting Systems that are proven to reduce industrial customers’ lighting-related electricity expenses by up to 90%. With this System — smart lights, wirelessly networked together and centrally controlled — the company is defining a new class of networked LED lighting that maximizes both delivered light and energy efficiency. Digital Lumens has been recognized as a 2011 World Economic Forum Technology Pioneer and a 2011 Global Cleantech 100 Company. For more information, please visit http://www.digitallumens.com .

SOURCE: Digital Lumens

The Utility Technology Challenge — sponsored by the Clean Technology and Sustainable Industries Organization (CTSI) and partners that include TechConnect, Fraunhofer TechBridge, Department of Energy, and Kauffman Foundation — is designed to identify emerging technology providers that demonstrate ‘exceptional promise’ in key areas, such as building and energy efficiency. Retroficiency was selected by a panel of leading utilities and enterprises as one of fifteen finalists out of an initial 150 applicants.

With U.S. utilities now spending approximately $3 billion on C&I efficiency programs and increasingly being rewarded for over performance or facing penalties for missed targets, they now need to proactively segment and meaningfully engage commercial customers in order to be successful,” said Bennett Fisher, CEO, Retroficiency. “VEA’s analytics-based approach delivers actionable insights that allow utilities to ‘hyper-target’ commercial customers with the right efficiency message at the right time.”

Retroficiency will present at the TechConnect World conference in June for the opportunity to secure a pilot of VEA with a participating utility organization and a share of $100,000 in pilot-demonstration funds.

About Retroficiency, Inc. Retroficiency enables energy service providers and utilities to cost-effectively prioritize high potential commercial buildings and evaluate thousands of energy efficiency measures in minutes. Our Building Efficiency Intelligence (BEI) platform delivers accurate, actionable insights and recommendations aligned with target goals. Retroficiency is trusted by some of the largest utilities and energy service providers in the world.

Source: www.retroficiency.com .

Close to 300 industry professionals are expected to attend the event, which will feature a series of educational and networking opportunities, as well as 30 exhibitors showcasing new products, services and solutions from industry innovators.

Keynote presentations will shed new light on regional and national successes in energy efficiency and demand response:

– Malcolm Woolf, Director of Maryland Energy Administration. Dr. Woolf will discuss Zero to 60: Energy Successes and Opportunities — EmPOWER Maryland. Learn how EmPOWER Maryland’s “top ten” ranking by ACEEE was achieved via a successful partnership with the Governor of Maryland, state agencies, and utilities. Learn how this powerful combination of stakeholders has dramatically improved Maryland’s energy efficiency performance in only three years.

– Kathleen Hogan, PhD, Deputy Assistant Secretary for Energy Efficiency in the Office of Energy Efficiency and Renewable Energy (EERE) at the U.S. Department of Energy. Dr. Hogan oversees a more than $900 million annual energy efficiency policy, program, and research portfolio including industrial, buildings, and vehicle technologies, along with federal energy management. Dr. Hogan will provide an overview on DOE’s approach to increasing the market for energy efficiency products and services.

– Julie Albright, PhD, Research Scientist in the Information Sciences Institute, Viterbi School of Engineering at the University of Southern California. Dr. Albright, a highly-respected “digital sociologist,” will discuss several megatrends, which will have an increasing impact on utilities and their customer base in the coming years. She will share her insights on what the “new energy professional” will need to know to stay nimble and responsive in this digitally enriched environment. She will also explore the challenges and opportunities for energy efficiency programs as utilities move from traditional electricity production and delivery – towards becoming “social utilities.”

In addition, breakout and roundtable sessions will highlight industry best practices and case studies on subjects including: implementing energy efficiency, demand management and community-based programs; succeeding in small business markets; tackling the unique challenges of the C&I markets; creating innovative programs for low income customers; and more.

WHAT: Energy Efficiency Forum; national conference of the Association of Energy Services Professionals

WHEN: May 15 — 17, 2012

WHERE: Hilton Baltimore, Camden Yards

HOW TO REGISTER: Go to www.aesp.org

AESP provides professional development programs, a network of energy practitioners, and promotes the transfer of knowledge and experience. Its members work in the energy services industry and represent electric and natural gas utilities, public benefits associations, regulatory and non-profit entities, vendors, manufacturers and consulting firms. For more information, please visit www.aesp.org .

SOURCE: AESP – Association of Energy Services Professionals

Operating loss at $12.4 million was significantly reduced for the nine months ended January 31, 2012, compared with $15.8 million for the nine months ended January 31, 2011, primarily reflecting a 33% decrease in product development costs.

Net cash used in operations decreased to $9.7 million for the nine months ended January 31, 2012 from $14.0 million for the prior-year period.

Strong operating performance reported with regard to the Littoral Expeditionary Autonomous PowerBuoy (“LEAP”) for coastal security and maritime surveillance, under contract with the US Navy. The device is significantly smaller and more compact than the Company’s utility PowerBuoy. The LEAP PowerBuoy posted better than anticipated results. While the Navy mission called for 150 watts of continuous power, the LEAP system supplied continuous power in excess of 400 watts throughout the entire deployment – including during Hurricane Irene, which passed directly overhead.

Continued work under the €2.2 million WavePort project in Spain, teaming with the University of Exeter to design a new wave prediction model and with a Spanish steel manufacturer to build a PB40 buoy structure for demonstration of the wave-by-wave electronic “tuning” capability.

Progress made in Australia towards a planned 19MW wave power station with the commencement of site development and permitting activities.

The Company presented at the Annual Needham Growth Conference in New York on January 11 and will present at the upcoming Roth Capital Conference on March 14 in Laguna Niguel, California.

“Ocean Power Technologies is taking the necessary steps to advance our PowerBuoy technology towards commercialization while continuing to manage our cash conservatively,” said Charles F. Dunleavy, Chief Executive Officer of OPT. “This quarter’s operational highlights were the continued progress being made under our WavePort project in Spain and the recently reported excellent results for our LEAP autonomous PowerBuoy deployed for the US Navy – which we expect will bolster interest in such technology. At the same time, we are working hard to move forward with our partners in Australia and Japan and are also preparing to launch our PB150 off the coast of Reedsport, Oregon later in 2012. The performance of our first PB150 PowerBuoy off Scotland and our autonomous LEAP device off New Jersey earlier this fiscal year have established important milestones while we actively market our products internationally. As a result, we see growing interest in our technology, which gives us great confidence for the future.”

Financial Review

OPT’s contract backlog as of January 31, 2012 was $7.8 million compared to $8.8 million as of October 31, 2011 and $5.8 million as of January 31, 2011. Backlog includes funded amounts and unfunded amounts that are expected to be funded in the future. Funded backlog was $5.8 million, $6.8 million, and $5.3 million as of January 31, 2012, October 31, 2011 and January 31, 2011, respectively.

Results for the Fiscal Third Quarter Ended January 31, 2012

For the three months ended January 31, 2012, OPT reported revenues of $0.9 million as compared to revenues of $1.5 million for the three months ended January 31, 2011. This decrease primarily reflects lower revenues related to the Company’s PB150 being prepared for deployment off Reedsport, Oregon, as well as lower revenue tied to the Navy’s LEAP program on a year-over-year basis, as that project was successfully completed in this fiscal 2012 third quarter. These revenue declines were partially offset by an increase in revenue from the Company’s WavePort project.

The operating loss for the three months ended January 31, 2012 was $3.2 million as compared to an operating loss of $3.8 million for the three months ended January 31, 2011. The reduction in operating loss year-over-year was due primarily to a decrease in product development costs, principally for the PB150 system that underwent successful ocean trials off the coast of Scotland in 2011, partially offset by costs related to the PB150 PowerBuoy in Reedsport, Oregon.

The net loss was $2.2 million for the three months ended January 31, 2012 compared to $3.4 million for the same period in the prior year. This decrease in net loss was due primarily to the decline in operating loss and a higher recorded income tax benefit due to the sale of New Jersey net operating tax losses, partially offset by a decrease in interest income and a higher foreign exchange loss.

Results for the Nine Months Ended January 31, 2012

For the nine months ended January 31, 2012, OPT reported revenues of $4.3 million as compared to revenues of $4.8 million for the nine months ended January 31, 2011. This decrease primarily reflects lower revenues associated with the US Navy’s Deep Water Active Detection System project, and declines in revenue tied to the Company’s LEAP program as well as the PB150 being prepared for deployment off Reedsport, Oregon. The year-to-date revenue decline was partially offset by work on the Company’s WavePort project in Spain and by the funded development of the PB500 PowerBuoy.

The operating loss for the nine months ended January 31, 2012 was $12.4 million as compared to an operating loss of $15.8 million for the nine months ended January 31, 2011. The reduction in operating loss year-over-year was due primarily to a decrease in product development costs, principally for the PB150 system off the coast of Scotland and the Company’s Hawaii project with the US Navy, as these projects neared completion during fiscal year 2012. Gross profit for the nine months ended January 31, 2011 was negatively impacted by a reduction in revenues of $240,000 due to a change in the Company’s estimated revenue recognized in connection with its project off the coast of Spain.

The net loss was $11.1 million for the nine months ended January 31, 2012 compared to $15.1 million for the same period in the prior year. This decrease in net loss was due primarily to the decline in operating loss and lower foreign exchange losses, as well as a higher recorded income tax benefit, partially offset by a decrease in interest income.

Cash and Investments

On January 31, 2012, total cash, cash equivalents, restricted cash and investments were $37.8 million. Net cash used in operating activities was $9.7 million for the nine months ended January 31, 2012, compared to $14.0 million for the same period last year. OPT received approximately $1.1 million and $0.4 million in connection with the sale of New Jersey net operating tax losses during the nine months ended January 31, 2012 and 2011, respectively. As previously stated, OPT expects its cash outflows to decrease in fiscal 2012, as compared to the prior fiscal year, reflecting the completion of ocean trials of the PB150 off the coast of Scotland.

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Additional information may be found in the Company’s Quarterly Report on Form 10-Q that will be filed with the US Securities and Exchange Commission (“SEC”). The Form 10-Q may be accessed at www.sec.gov or at the Company’s website in the Investor Relations tab.