The full-scale proposal will be preceded by a 2MW pilot project OPT has planned approximately 4km off the coast of Oregon, at an average depth of 50m.

OPT's PowerBuoys use a vertically oriented column or cylinder that absorbs the rising and falling motion of ocean waves, driving an internal electric generator that can be cabled away to nearby mainland locations, or used to power onsite marine equipment.

OPT said its proposal had been developed in consultation with local communities and key stakeholders, claiming support for the PowerBuoy equipment was based on its compact and low-visual impact design.

"This application to [the US Federal Energy Regulatory Commission] represents a major step in the development of OPT's wave power projects in the US for large-scale electricity generation," OPT chief executive George Taylor said.

Proposed legislation currently being considered by the US Government could result in a significant increase in funding for wave-energy demonstration projects, from $US6 million to $20 million per annum.