Wave Energy Project To Be Awarded EUR 1.37 million

Business Wire, July 31, 2006

DUBLIN, Ireland & VANCOUVER, Canada -- Finavera Renewables Limited (Finavera Renewables) a private Irish renewable energy company focused on wind and wave energy development, announced today that its' wholly owned subsidiary, AquaEnergy Group Ltd, has been successful in its application to the European Commission under the Framework Protocol 6 (FP6) program. As a result, the European Commission may contribute up to EUR 1.37 million toward the deployment of a wave energy power plant off the coast of Portugal, subject to successful contract negotiations and completion of the internal, formal selection process.

Wave Energy Converter Project

The AquaEnergy Group is a 100% owned subsidiary of Finavera Renewables, and has received a letter of successful evaluation from the European Commission Directorate-General for Energy and Transport. The award of up to EUR 1.37 million may be granted under the European Commission's Framework Protocol 6 program as a contribution to the deployment of a 2MW full scale wave energy conversion power plant in Portugal. The proposed power plant will be situated in 60 meters of water approximately 10 kilometers off the coastline midway between the Portuguese cities of Lisbon and Porto. Once successful operation of the plant has been demonstrated, the plant generating capacity is expected to be increased to 100MW - producing enough electricity to power more than 60,000 homes.

Alla Weinstein, CEO of AquaEnergy said, "This award reflects the last four years of work that the team has put into the project. With our partners, Dunlop Oil and Marine, Portuguese engineering group Kynamar and Labelec, a division of the Portugal's largest utility - Energias de Portugal (EDP), we will begin executing our deployment plan once negotiations with the European Commission and the partners are completed." She continued, "The Portuguese groups in particular have been very supportive as they see the long term value in building a wave technology industry. It has been estimated recently that the country's coastline contains enough exploitable energy to contribute up 20% of the country's total electricity consumption - a total value of over EUR 5 billion."

Jason Bak, CEO of Finavera Renewables commented "We are very excited about being in this position, at the right time and place. We are looking towards the future where wave power generation will join the commercial realm along with other types of renewables like wind energy. Recent technological advances are moving wave energy forward to a cost competitive renewable source of electricity." Adding, "Not only does this award assist us in deploying our AquaBuOY technology at a true commercial scale, but along with our 1MW Makah Bay project in Washington, USA, we can now start to look at building a pipeline of other projects world wide."

About Finavera Renewables

Finavera Renewables is a private, Irish company dedicated to the development of renewable energy resources and technologies. The Company is in the process of listing, through a reverse take over, on the TSX Venture Exchange. The Company's objective is to become a major renewable and green energy producer by developing and operating its assets in the wind and wave energy sectors.

Finavera Renewables has twelve wind projects under development in the Peace River region in British Columbia, Canada with potential capacity of over 1,500MW on approximately 52,000 hectares of land. In addition, the company is developing a potential 180MW of wind energy projects in Ireland, enough to power 108,000 average European homes.

Finavera Renewables is leveraging opportunities arising from market regulation, global demand and management expertise, and offers a diversified portfolio of assets to maximize returns and balance risks for shareholders. Further company details are available at http://www.finavera.com/renewables/default.asp

About AquaEnergy Group

AquaEnergy Group Ltd. is a Mercer Island, Washington, USA-based company founded in 2001 with AquaEnergy Development UK, Ltd. as a UK-based product development subsidiary. AquaEnergy is focused on the development of the AquaBuOY technology and offshore power plants that produce renewable electricity from ocean wave energy. Further details on the company are available at www.aquaenergygroup.com.

About the European Commission - Framework Program 6 (FP6)

FP6 aims to contribute to the creation of a true "European Research Area" (ERA). The ERA is a vision for the future of research in Europe, leading to an international market for science and technology. It fosters scientific excellence, competitiveness and innovation through the promotion of better co-operation and co-ordination between relevant participants at all levels. Economic growth increasingly depends on research, and many of the present and foreseeable challenges for industry and society can no longer be solved at a national level alone. At their summit in Lisbon in March 2000, heads of state and governments called for better leveraging of European research efforts through the creation of the ERA. The Framework Program is the financial instrument that will help make the European Research Area a reality. Further details are available from http://europa.eu/scadplus/leg/en/lvb/i23012.htm